US stock indexes open lower on renewed concerns over variant

TOKYO – Stocks are opening little connected Wall Street aft the caput of a large vaccine shaper expressed interest astir however effectual existent jabs volition beryllium against the caller variant of the coronavirus. The S&P 500 gave backmost 0.6%, the Nasdaq slipped 0.3% and the Dow Jones Industrial Average fell 0.9%. European markets were besides modestly lower. The weakness came aft the caput of Moderna told the Financial Times that helium expected that existent vaccines would conflict with the omicron variant. Treasury yields fell arsenic investors sought to trim their vulnerability to risk, and crude lipid prices, which beryllium connected a beardown economy, slumped 3.9%.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier communicative follows below.

Global shares mostly slipped Tuesday arsenic investors cautiously weighed however overmuch harm the caller omicron coronavirus variant whitethorn unleash connected the planetary economy.

Germany's DAX mislaid 1.1% to 15,106.35 successful day trading. France’s CAC 40 slipped 0.9%, portion Britain's FTSE 100 shed 0.8%. In Asia, Japan’s benchmark Nikkei 225 closed 1.6% little astatine 27,821.76, arsenic pessimism implicit the omicron variant acceptable in. Hong Kong’s Hang Seng besides fell 1.6%, portion the Shanghai Composite was astir flat.

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U.S. shares were acceptable for a little open, with the aboriginal declaration for the Dow industrials down 1% astatine 34,710.00. S&P 500 futures fell 0.8% aft the benchmark scale roseate 1.3% Monday.

Omicron adds much hazard to a planetary system already contending with paralyzing uncertainty. The variant appears to dispersed much easily, and countries astir the satellite person enactment up barriers to question successful hopes of stemming it.

Travel bans, including decisions by Japan and Israel to barroom overseas visitors, endanger to disrupt planetary business. Global proviso chains already gummed up by bottlenecks could beryllium further ensnarled if outbreaks unopen down factories, ports and freight yards.

Federal Reserve Chair Jerome Powell says that the quality of the caller variant could dilatory the U.S. system and hiring, portion besides raising uncertainty astir inflation.

The caller summation successful delta cases and the emergence of the omicron variant “pose downside risks to employment and economical enactment and accrued uncertainty for inflation,” Powell said Monday successful prepared remarks to beryllium delivered to the Senate Banking Committee connected Tuesday. The caller variant could besides worsen proviso concatenation disruptions, helium said.

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Some analysts deliberation a superior economical downturn, similar what happened past year, apt volition beryllium averted due to the fact that galore radical person been vaccinated. But they besides deliberation a instrumentality to pre-pandemic levels of economical activity, particularly successful tourism, has been dramatically delayed.

“Uncertainty from the caller omicron variant whitethorn look to bring astir higher economical risks for (Asia) astatine a clip wherever it is shifting towards further reopening,” Yeap Jun Rong, marketplace strategist astatine IG successful Singapore, said of the omicron's interaction connected Asia.

China’s manufacturing enactment rebounded successful November arsenic orders improved and powerfulness shortages eased, according to a survey by an manufacture radical and the nationalist statistic agency.

The survey recovered that a monthly purchasing managers’ scale roseate to 50.1 from October’s 49.2 connected a 100-point scale. The scale spent the erstwhile 2 months beneath 50, showing decreasing activity. A measurement of accumulation roseate 3.6 points to 52, reflecting a betterment from powerfulness rationing imposed successful large manufacturing areas successful September.

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Besides waiting connected much clues astir however overmuch economical harm omicron volition yet do, the marketplace has respective large mileposts this week that could plaything prices. The headliner is apt Friday's U.S. jobs report, wherever economists expect to spot an acceleration successful hiring by employers during November.

In vigor trading, benchmark U.S. crude dropped $2.03 to $67.92 a barrel. It roseate $1.80 to $69.95 per tube connected Monday. Brent crude, the planetary standard, fell $2.29 to $70.93 a barrel.

In currency trading, the U.S. dollar slipped to 112.87 Japanese yen from 113.56 yen. The euro precocious to $1.1365 from $1.1293.

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