European Bourses Slump on Refreshed Omicron Concerns

European bourses were slumping at midday Tuesday after Moderna's MRNA chief executive Stephane Bancel told the Financial Times that existing vaccines may be less effective against the new omicron variant of the COVID-19 virus. Oil shares were leading decliners.

Market denizens also weighed a Wall Street futures market flashing red, and lower closes overnight on Asian exchanges.

Annual inflation in the 19-state euro area is expected to strike 4.9% year-over-year in November, with energy prices up by more than 27% in the 12 months, according to a flash estimate from Eurostat.

The pan-continental Stoxx Europe 600 Index was off 1.3% mid-session.

The Stoxx Europe 600 Technology Index was off 1.1% and the Stoxx 600 Banks Index was off 1.1%. The Stoxx Europe Oil and Gas Index was off 2.7%.

The Stoxx Europe Food and Beverage Index was off 1.5%, the REITE, a European REIT index, was off 1.5%, and the Stoxx Europe 600 Insurance Index was off 0.9%.

In national market indices, the German DAX fell 1.4%, the FTSE 100 Index in London was off 1.0%, and the CAC 40 in Paris was down 1.3%. Spain's IBEX 35 declined by 1.8%.

Yields on benchmark 10-year German bonds were more negative, at minus 0.35%.

Front-month Brent crude oil futures were 2.7% lower at $71.21 per barrel.

The Euro Stoxx 50 volatility index was up 7.6% at 31.00, indicating above-average volatility for European stock markets in the next 30 days, a negative signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests expectations for calmer markets.