FTSE 100 eyes worst month in more than a year on Omicron hit

UK’s blue-chip index fell on Tuesday, on course for its worst month in more than a year, as a warning by Moderna (NASDAQ:MRNA)’s chief executive over the new Omicron coronavirus variant hammered pandemic-exposed sectors like banks and commodities.

The FTSE 100 declined 0.9% by 0808 GMT and was set for monthly declines of 2.8%, while the domestically focussed mid-cap index fell 0.7%.

Moderna Chief Executive Officer Stéphane Bancel told the Financial Times that existing COVID-19 vaccines were unlikely to be as effective against the Omicron variant as they have been against the Delta version, sparking a sell-off in global stocks.

Drugmaker Astrazeneca (LON:AZN), which also makes COVID-19 vaccines, fell 2.2%.

Banks dragged down the FTSE 100 with a 1.1% fall, while oil stocks dropped 1.2% as crude prices declined on fears that the heavily mutated Omicron would spark fresh lockdowns and dent global growth.

British airline easyJet (LON:EZJ) gained 0.8% after saying it remained well placed to handle the uncertainty stemming from fresh COVID-19 outbreaks.