The latest from London: Doubts over vaccine efficiency send FTSE 100 down

Comments by Moderna Chief Executive Officer Stéphane Bancel unleashed a global sell-off, which caused the FTSE 100 to plunge by 1.4% this morning. He told the Financial Times that vaccines are likely to be less effective against the Omicron variant than the Delta one.

Vaccine maker Astrazeneca fell 2.2% after the article. Travel, banks and oil stocks were among the poorest performers as investors fear a return of lockdowns.

Fed Chairman Jerome Powell is due to speak today and is widely expected to warn about the impact that Omicron could have on the economic recovery. US 10-year Treasury yields fell 7 basis points this morning.

On the bright side, Chinese PMIs were rather good, highlighting a rise in manufacturing activity in November, while services remained steady.

 

Things to read today:

Powell Says Omicron Adds Economic Risks, Inflation Uncertainty (Bloomberg)

A new German Era Dawns, but collisions lie in wait for coalition (The Guardian)

Moderna chief predicts existing vaccines will struggle with Omicron (Financial Times)