SHANGHAI, Dec 1 (SMM) — This is a roundup of global macroeconomic news last night and what is expected today.

The U.S. dollar strengthened on Tuesday after Federal Reserve Chair Jerome Powell said the risk of inflation had increased and suggested retiring the term “transitory” for inflation, while worries about the new Omicron coronavirus variant kept a bid in safe-haven currencies.

During a hearing with the U.S. Senate Banking Committee, Powell also said higher prices are generally related to the pandemic.

The dollar index turned positive after the Powell comments and was last up 0.1% at 96.331.

Earlier, the Japanese yen and Swiss franc rose against the dollar, after Moderna’s CEO said the coronavirus vaccines will likely be less effective against the Omicron variant as they have been against other variants.

U.S. stock futures were higher in overnight trading on Tuesday following a sell-off on Wall Street over fears about the new Covid variant, omicron, and the Federal Reserve mulling a quicker-than-planned taper.

Dow futures rose about 60 points. S&P 500 futures gained 0.4% and Nasdaq 100 futures rose 0.5%.

The major averages have seen several volatile sessions, starting last Friday when the Dow Jones Industrial Average experienced its worst day since October 2020. Stocks rebounded on Monday, only to turn downward again on Tuesday.

Oil prices tumbled more than 3% on Tuesday after Moderna’s CEO cast doubt on the efficacy of Covid-19 vaccines against the Omicron coronavirus variant, spooking financial markets.

The head of drugmaker Moderna told the Financial Times that Covid-19 vaccines are unlikely to be as effective against the Omicron variant of the coronavirus as they have been against the Delta variant.

Brent crude futures fell $2.87, or 3.9%, to $70.57 per barrel after slipping to an intraday low of $70.52, the lowest since Sept. 1. U.S. West Texas Intermediate (WTI) crude futures settled 5.4%, or $3.77, lower at $66.18 per barrel.

The Moderna CEO’s comments were just a catalyst for the market which was already weak, said a Singapore oil trader who declined to be named due to company policy.

Gold beat a hasty retreat on Tuesday as investors latched on to seemingly hawkish remarks from the U.S. Federal Reserve chair, erasing gains from an over 1% rally fueled by concerns over the Omicron coronavirus variant.

Spot gold fell 0.7% to $1,773.21 per ounce by 02:14 p.m. ET (1914 GMT). U.S. gold futures settled down 0.5% at $1,776.5.

Prices earlier rose as much as 1.3% earlier in the session after a warning from Moderna’s CEO that COVID-19 vaccines were likely to be less effective against the new variant.

The pan-European Stoxx 600 closed 0.9% lower, with travel and leisure stocks shedding 2.8% to lead the losses as most sectors and major bourses slid into negative territory.

Losses accelerated later in the day after the U.S. Fed chief indicated the central bank could hasten a tightening of monetary policy.