Global Stock Markets and Oil Prices Fell After Moderna Omicron Warning

WHO Stated That It Might Take Several Weeks Before the Severity of Omicron Infection Could Be Determined

The stock markets of Europe have recently fallen after the Moderna boss has given a public statement along with giving an Omicron warning, in which it was evident that the effectiveness of the coronavirus vaccine could be doubted regarding the spread of the new Omicron variant. Stephane Bancel has said that he thought that is a possibility regarding the material drop in the efficacy of the Covid-19 vaccine.

Decline in the global stock market

The Omicron variant had first been diagnosed in the region of South Africa; the people that have been detected with the infection are currently suffering from mild symptoms. But restrictions on all travel have been imposed as a precautionary measure by countries including the United States, European Union, and the United Kingdom due to the Omicron warning for rapid local transmission.

It has been predicted by Mr. Bancel that the already existing coronavirus vaccine would not be fully effective in tackling the ongoing Omicron warning, and it might take several months for the pharmaceutical firms to conduct tests and make another viable vaccine for the mutated viral strain of Covid-19 infection. He said that there is no place where the effectiveness of the vaccine is to the same extent.

The FTSE 100 of the United Kingdom, Dax of Germany and Cac 40 of France have recently seen a slip of more than 1.5% each, and the Stoxx 600 of the pan-Europe had also seen a drop of about 1.5% to hit their lowest level in the past seven weeks before they all were able to regain some ground soon after the Omicron warning.

The Nikkei index of Tokyo has recently closed down about 1.6%, the prices for crude oil have fallen around 3%, while the Australian dollar has been able to hit the levels of one-year low.

Due to the Omicron warning given publicly as the viral strain is rapidly spreading with much deadlier intensity, there has also been a scramble for other assets that are generally considered to be a safer option in the uncertain time, including Gold, the Yen, and the government bonds of Germany.

According to the Commonwealth Bank of Australia’s currency strategist, the Omicron warning is not a piece of good news, and the global markets have reacted in the same manner as it had been expected. The global markets have been a dive on Friday, after multiple investors have become disturbed and shocked due to the discovery of the new viral strain and the public Omicron warning, with the index of FTSE 100 that has suffered from the largest drop after more than a year. 

Soon after that, the global stock market has been able to rise slightly since then but is still below the levels of the previous week. However, both the FTSE 250 and FTSE 100, which are much more focused on the firms of the United Kingdom, still have a substantially higher level in comparison with the previous year and are up around 9.6% and 8.3%, respectively.

Restrictive measures against Omicron variant

The complete uncertainty regarding the newly discovered variant of Covid-19 infection, which is being thought to be of a much deadlier nature than its predecessor variant, has triggered an alarm globally. To prevent an influx of any diseased active coronavirus case, strict measures have been placed by border security that has cast a long shadow over the recovery of the economy of the countries from the coronavirus pandemic, which had taken place over the course of the past one and a half year. However, according to the executive director of the European Medicines Agency, while giving a statement to the European Parliament, even if the Omicron variant is able to gain widespread control over the regions in Europe, the coronavirus vaccines that are already existing in the world would be able to provide some level of protection against it.

The Omicron warning is given to the world prior to the spread of the disease in large places, as already 42 different active cases have been reported of the Omicron variant in 10 countries of the European Union, while six probable cases are still under quarantined observation. The cases range from being mild to moderate, while some patients do not show any symptoms of the disease in the younger population.

Also read South Africa Is Being ‘Punished’ For Discovering a New Omicron Variant