IL prices have fallen and stocks are under pressure after the Moderna owner warned that the current vaccine is likely to be less effective against the Omicron variant.
Stefan Bansel also told the FT that it could take months for new vaccines to be developed on a sufficient scale. His comments triggered more selling pressure for the FTSE 100 index after yesterday’s 1% rebound.
In corporate news, EasyJet has provided investors with the latest booking trends, along with the publication of annual results.
Easyjet tops loss of £2bn in two years
EasyJet suffered a loss of £1.13 billion as the pandemic took its toll on the low-cost airline, with the latest Covid version raising further concerns for investors and the broader industry.
The company says that bookings for the first half of next year are ahead of those before the emergence of Kovid. But it acknowledges that “many uncertainties remain” and it is impossible to say exactly what effect Omicron will have on European travel.
CEO Johan Lundgren said:
“EasyJet is moving through the pandemic anew by transforming business by optimizing our network and flexibility, delivering significant cost savings, as well as transforming ancillary revenue.
“In summary, we remain aware that many uncertainties remain as we navigate the winter, but we remain optimistic about the opportunity for EasyJet to win customers and take market share from rivals in this period.” Let’s see a unique opportunity.”
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Huge fall in FTSE 100
European markets’ hopes of a recovery have been hit after a Moderna owner warned that existing vaccines could conflict with the Omicron variant.
Stephan Bansel also told the FT that it would take months for drug companies to create enough jabs on a large enough scale to make a difference.
His tone, which contrasts with suggestions from Pfizer and BioNTech that any new vaccine will be able to be modified fairly quickly, led to a sharp drop in oil prices as an increasingly panicked market reacted to the prospect of further COVID-19 restrictions. Of.
Brent crude futures fell 3% to $71.52 a barrel and CMC Markets expects the FTSE 100 index to open 90 points lower at 7020.
The latest sell-off comes after a modest recovery yesterday, when the FTSE 100 rose 0.9%, or 65.92 points, to close at 7109.95, to recap Friday’s 3.6% decline.
Wall Street also ended higher, led by a 1.9% jump for the tech-laden Nasdaq after President Biden dismissed the immediate possibility of further lockdowns.
CMC’s Michael Hewson said: “The decline in the markets this morning suggests that until it comes to the new volumes, we have no clear indication that sentiment remains extremely volatile.”