We’ve been witnessing something new every day since Covid-19 happened. So, what’s new now? Omicron, the latest variant; and it might have a new vaccine by early 2022, Moderna. It is also taking the attention away from inflation.

It is not clear yet how serious this new more virulent and vaccine-resistant variant is, and with no confirmed deaths, it could be similar to the Delta variant. How about we compare the two. In terms of macro financial markets, the Delta variant allowed central banks to keep monetary policy loose whilst the world opened up. With the new variant, the possible hit to demand from increased Covid restrictions due to Omicron will likely remove a lot of the pressure that was on central bankers to tighten policy to stem inflation.

On the markets front, MRNA shares closed 20% higher on Friday, as Moderna has proven to have fast-tracking clinical testing, and what appears to be promising future revenues, with hundreds of millions of vaccine doses expected to be manufactured monthly, especially that SARS-CoV-2 “is not going away”.

On the technical side, now that the $300 mark level is breached, all eyes are on the $350 resistance level. On a fundamental note, Piper Sandler analyst, Edward Tenthoff, reiterated an overweight rating on Moderna with a $348 price target on 11/28/21.

Hence, how will economies and inflation respond to Omicron?

Moderna Technical Chart

Moderna Profile

Moderna, Inc engages in the development of transformative medicines based on messenger ribonucleic acid (mRNA). Its product pipeline includes the following modalities: prophylactic vaccines, cancer vaccines, intratumoral immuno-oncology, localized regenerative therapeutics, systemic secreted therapeutics, and systemic intracellular therapeutics. The company was founded by Noubar B. Afeyan, Robert S. Langer, Jr., Derrick J. Rose and Kenneth R. Chien in 2010 and is headquartered in Cambridge, MA.

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