# Omicron, found in Europe 11 days ago, jolts markets on vaccine fears
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-11-30
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: COVID-19 Variant: Financial Markets React & Recover
Meta Description: Stay informed on the latest updates about market fluctuations due to vaccine efficacy worries surrounding the Omicron variant of COVID-19.
URL: https://financedigest.com/omicron-found-in-europe-11-days-ago-jolts-markets-on-vaccine-fearshtml

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By Ludwig Burger and Emma Thomasson

FRANKFURT/BERLIN (Reuters) – Financial markets fell sharply on Tuesday after the head of drugmaker Moderna said existing COVID-19 vaccines would be less effective against the new Omicron variant, but they recovered strongly after more reassuring comments from European officials.

European Medicines Agency (EMA) executive director Emer Cooke told the European Parliament that existing vaccines will continue to provide protection.

Andrea Ammon, chair of the European Centre for Disease prevention and Control (ECDC), said the cases of Omicron so far confirmed in 10 European Union countries were [mild or without symptoms](https://www.financedigest.com/biden-tests-positive-for-covid-has-mild-symptoms-taking-paxlovid-treatment.html "Biden tests positive for COVID, has mild symptoms, taking Paxlovid treatment"), although in younger age groups.

Major [European stock markets](https://www.financedigest.com/explainer-why-european-money-market-funds-inflows-are-lagging-behind-the-u-s-torrent.html "Explainer-Why European money market funds inflows are lagging behind the U.S. torrent?"), spooked by fears that vaccine resistance https://www.reuters.com/world/how-worried-should-we-be-about-omicron-variant-2021-11-27 might trigger restrictions that would choke off a nascent recovery, were down about 0.5% at around 1500 GMT, having fallen as much as 1.5% in early trade. \[MKTS/GLOB\]

In New York, the Dow Jones [Industrial Average and the S&P 500 respectively opened](https://www.financedigest.com/open-banking-the-real-step-change-for-the-global-payments-industry.html "Open banking: The real step change for the global payments industry") 0.2% and 0.3% lower. \[USD/\] \[O/R\] \[US/\]

“There is no world, I think, where (the effectiveness) is the same level . . . we had with Delta,” Moderna [CEO Stephane Bancel told the Financial Times](https://www.financedigest.com/ogrady-to-return-to-bank-of-ireland-as-ceo-irish-times.html "O’Grady to return to Bank of Ireland as CEO – Irish Times") https://www.ft.com/content/27def1b9-b9c8-47a5-8e06-72e432e0838f.

“I think it’s going to be a material drop. I just don’t [know how much because we need](https://www.financedigest.com/g20-summit-what-you-need-to-know-now.html "G20 Summit: What you need to know now") to wait for the data. But all the scientists I’ve talked to . . .are like ‘this is not going to be good’.”

The University of Oxford said there was no evidence that current vaccines would not prevent severe disease from Omicron https://www.reuters.com/business/healthcare-pharmaceuticals/how-fast-does-it-spread-scientists-ask-whether-omicron-can-outrun-delta-2021-11-29, but that it was ready to rapidly [update its shot](https://www.financedigest.com/pfizer-biontechs-updated-covid-shot-shows-strong-response-against-bq-1-1.html "Pfizer/BioNTech’s updated COVID shot shows strong response against BQ.1.1"), developed with AstraZeneca, if necessary.

![](https://www.globalbankingandfinance.com/wp-content/uploads/2021/11/Omicron-642x500.jpg)

(GRAPHIC: OMICRON VARIANT MAP – https://graphics.reuters.com/USA-VARIANT/zdvxonlxxpx/Omicron.jpg)

LAB TESTS

Moderna could not be reached for comment.

Regeneron Pharmaceuticals said its [COVID-19 antibody cocktail](https://www.financedigest.com/astrazeneca-antibody-cocktail-study-shows-success-treating-covid-19.html "AstraZeneca antibody cocktail study shows success treating COVID-19") and other similar antiviral treatments could be less effective against the latest variant.

News of Omicron’s emergence had wiped roughly $2 trillion off [global stocks](https://www.financedigest.com/dollar-jumps-u-s-stocks-buck-global-rally.html "Dollar jumps, U.S. stocks buck global rally") on Friday, after it was identified in southern Africa and announced on Nov. 25.

Yet Dutch authorities said the variant had been detected in the Netherlands as early as Nov. 19, before two flights arrived from [South Africa](https://www.financedigest.com/ancs-failed-foreign-policy-hurting-south-africa.html "ANC’s failed foreign policy hurting South Africa") that were known to have carried the virus.

Cooke said lab [tests for “cross neutralisation” would take about two weeks](https://www.financedigest.com/dollar-near-one-week-high-as-traders-prepare-for-powell-payrolls-tests.html "Dollar near one-week high as traders prepare for Powell, payrolls tests"). If there were a [need to change COVID-19](https://www.financedigest.com/the-financial-services-industry-needs-to-get-serious-about-cyber-security-in-the-covid-19-era.html "The financial services industry needs to get serious about cyber security in the Covid-19 era") vaccines, new ones could be approved within three or four months, she added.

[“Vaccination will likely still keep](https://www.financedigest.com/keeping-flu-at-bay-flu-covid-19-vaccines-are-on-the-way.html "Keeping Flu at Bay? Flu/Covid-19 Vaccines are on the Way!") you out of the hospital,” said John Wherry, director of the Penn Institute for Immunology in Philadelphia.

Moderna and fellow drugmakers BioNTech and [Johnson & Johnson are already working on vaccines that specifically target Omicron](https://www.financedigest.com/betting-omicron-has-peaked-johnson-drops-covid-rules-in-england.html "Betting Omicron has peaked, Johnson drops COVID rules in England"). Moderna has also been testing a higher [dose of its existing booster](https://www.financedigest.com/jj-says-booster-dose-increased-antibodies-in-early-stage-studies.html "J&J says booster dose increased antibodies in early-stage studies").

But border closures have already cast a shadow over economic recovery just as parts of [Europe see a fourth wave of infections as winter sets](https://www.financedigest.com/investment-in-mental-health-amongst-cybersecurity-professionals-set-to-increase-according-to-infosecurity-europe-poll.html "Investment in mental health amongst cybersecurity professionals set to increase according to Infosecurity Europe poll") in.

[Bank of England](https://www.financedigest.com/what-to-make-of-the-headlines-brexit-and-bank-of-england-policy-eba-bank-stress-tests.html "What to make of the headlines? Brexit and Bank of England policy, EBA bank stress tests") policymaker Catherine Mann added to downbeat comments from U.S. Fed Chairman Jerome Powell by saying Omicron could [hit consumer](https://www.financedigest.com/uk-consumer-mood-hits-one-year-high-but-financial-gloom-persists.html "UK consumer mood hits one-year high, but financial gloom persists") confidence, which would not only weaken the British economy’s recovery but could also could push up inflation at the same time.

Many of the new [travel restrictions](https://www.financedigest.com/eu-to-restrict-travel-rules-for-russians-split-on-how-far-to-go.html "EU to restrict travel rules for Russians, split on how far to go") have focused, to South Africa’s fury, on banning flights to and from southern Africa.

Japan confirmed its first case of the new variant on Tuesday, in a traveller from Namibia. Australia found that a person with Omicron had visited a busy [shopping centre](https://www.financedigest.com/incentive-qas-expands-retail-portfolio-with-million-pound-shopping-centre-contract.html "Incentive QAS Expands Retail Portfolio With Million Pound Shopping Centre Contract") in Sydney while probably infectious.

![](https://www.globalbankingandfinance.com/wp-content/uploads/2021/11/spread_of_voc-301x500.jpg)

(GRAPHIC: The [spread of COVID-19](https://www.financedigest.com/as-delta-spreads-some-travelers-double-up-on-covid-19-vaccine-in-u-s.html "As Delta spreads, some travelers double up on COVID-19 vaccine in U.S") variants of concern – https://graphics.reuters.com/HEALTH-CORONAVIRUS/VARIANTS/jznpnyoorvl/spread\_of\_voc.jpg)

BORDER CONTROLS

Britain and the United States have both pushed their booster programmes in response to the new variant. [London said international arrivals would have to self-isolate until they get a negative result](https://www.financedigest.com/immediate-lift-of-oxford-property-prices-to-result-from-new-direct-high-speed-rail-connection-with-london.html "“Immediate lift” of Oxford property prices to result from new direct high speed rail connection with London") in a PCR test.

Greece said vaccination would be compulsory for the over-60s, the group [seen as most vulnerable to COVID-19](https://www.financedigest.com/sydney-covid-19-cases-seen-topping-2000-a-day-as-australia-ramps-up-vaccinations.html "Sydney COVID-19 cases seen topping 2,000 a day as Australia ramps up vaccinations").

[Australia on Monday delayed the reopening](https://www.financedigest.com/freedom-day-sydney-reopens-as-australia-looks-to-live-with-covid-19.html "‘Freedom Day’: Sydney reopens as Australia looks to live with COVID-19") of its international borders by two weeks, less than 36 hours before foreign students and skilled migrants were to be allowed back.

But in Germany, a current hotspot of the previous significant variant, Delta, the seven-day average infection [rate fell slightly for the first time in three weeks](https://www.financedigest.com/rate-rise-fears-prompt-third-week-of-global-equity-funds-outflows.html "Rate rise fears prompt third week of global equity funds outflows") after new restrictions to slow transmission.

Sources said chancellor-in-waiting Olaf Scholz , supported making [vaccination against COVID-19 compulsory and backed](https://www.financedigest.com/fda-advisers-back-the-same-covid-vaccine-for-initial-shots-boosters.html "FDA advisers back the same COVID vaccine for initial shots, boosters") barring the unvaccinated from non-essential stores.

Neighbouring Austria, which imposed its fourth full lockdown last [week after a surge](https://www.financedigest.com/hungary-cenbank-seen-hiking-100-bps-to-11-75-next-week-as-inflation-surges.html "Hungary cenbank seen hiking 100 bps to 11.75% next week as inflation surges") in infections, also registered a drop.

But France registered its [highest daily infection tally since](https://www.financedigest.com/russian-inflation-accelerates-to-7-61-m-m-in-march-highest-since-1999.html "Russian inflation accelerates to 7.61% m/m in March, highest since 1999") April.

And the Dutch health authority said [Omicron was already spreading](https://www.financedigest.com/oil-prices-slide-as-rapid-omicron-spread-dims-fuel-demand-outlook.html "Oil prices slide as rapid Omicron spread dims fuel demand outlook") in the Netherlands, where intensive care beds are running out and measures including restrictions on hospitality have yet to take effect.

The [curbs on travellers](https://www.financedigest.com/asias-airlines-ramp-up-flights-offers-as-tough-covid-travel-curbs-ease.html "Asia’s airlines ramp up flights, offers as tough COVID travel curbs ease") from southern Africa have highlighted the inequality of vaccine distribution, which may have given the virus more opportunities to mutate.

WHO head Tedros Adhanom Ghebreyesus said he understood concerns about Omicron, but added:

“I am equally concerned that several member states are introducing blunt, blanket measures that are not evidence-based or effective on their own, and which will only worsen inequities.”

The passenger liner Europa was docking in Cape Town on Tuesday in what was meant to be the official start of the first cruise ship season in South Africa’s top [tourist hub](https://www.financedigest.com/few-tourists-deserted-streets-in-casino-hub-macau-after-reopening.html "Few tourists, deserted streets in casino hub Macau after reopening") since the pandemic.

After Omicron was discovered while they were at sea, many passengers were [expected to fly straight home](https://www.financedigest.com/smart-home-devices-market-is-expected-to-grow-at-a-healthy-cagr-of-over-18-during-the-study-forecast-period-2021-2031.html "Smart Home Devices Market is expected to grow at a healthy CAGR of over 18% during the study forecast period 2021-2031").

(Reporting by Reuters bureaux worldwide; Writing by Himani Sarkar and Kevin Liffey; Editing by Shri Navratnam, Andrew Cawthorne, Nick Macfie and Angus MacSwan)


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