Peter Nurse

Investing.com – European stock markets fell Tuesday amid fresh worries about effectiveness of vaccines to combat the Omicron Covid-19 mutation.

At 3:50 AM ET (0850 GMT), the in Germany traded 1.4% lower, the in France also fell 1.6% and the U.K.’s dropped 1.3%. 

On Tuesday, Sentiment plummeted after Moderna Stephane Bancel, chief of NASDAQ:, suggested that existing vaccines wouldn’t be able to handle the Omicron variant in an article in the Financial Times. He also predicted a decrease in effectiveness.

He warned, however, that the manufacturing of the variant-specific injectables will take several months to complete.

Moderna is also available Pfizer AstraZeneca and (NYSE:) have provided vaccines for the Covid-19 virus to most countries.

Due to the spread of the omicron variant, more than 12 countries have been affected. This has prompted new travel regulations. 

According to Emirates’ President Tim Clark, a major disruption in peak December travel season could cause “significant traumas” for the international aviation industry.

Air France KLM (OTC:) stock fell 2.5%, IAG (LON:) stock dropped 0.8%, Lufthansa (DE:) stock fell 0.7%, while easyJet (LON:) stock only fell 0.2% after the budget airline stated that it is expecting passenger numbers to return to pre-pandemic levels next summer despite uncertainty over the winter months.

Ericsson (BS) stock dropped 0.9% to match the overall weakness. Even though Ericsson raised its global outlook for 5G Mobile Subscriptions at 660 Million by the close of this year due to stronger than expected demand both in China and North America, the Swedish telecom equipment company fell 0.9%.

Looking at economic data, French inflation unexpectedly rose in November. It reached its highest point in 13 years. With an increase of 0.4% from the previous month, it now stands at 3.4% for 12 months, which is the highest rate since September 2008.

The flash November number, which is due to be released later in session could feel the upward pressure. This was already expected to climb to an annual 4.5% from October’s 4.1%, more than double the Europe Central Bank’s 2.0% target. The November German unemployment data will also be worth your attention.

Earlier Tuesday, China recorded a surprise growth in factory activity in November, the first in three months, with the country’s coming in at 50.1 in November, above the previous month’s 49.2 figure. The was at 52.3, higher than the previous month’s 52.4 figure.

As omicron worries returned, crude prices fell. Traders worried about new lockdowns and their impact on global demand. 

Despite this, there are increasing expectations that the Organization of Petroleum Exporting Countries (OPEC+) will suspend plans to increase 400,000 barrels per day by January, when it meets later this week.

After rising 1.1% on the previous session, futures fell 2.5% to $68.19/barrel by 3:50 ET.

The price also rose 0.6% to $1.795.15/oz and traded 0.5% higher at 1.1351