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Worldwide markets plunge after Trump reveals has coronavirus

 Global markets nosedived this morning after US President Donald Trump and his wife Melania tested positive for coronavirus.

In initial deals, London's benchmark FTSE 100 index dropped 1.1 percent, Frankfurt's DAX 30 lost 1.4 percent and the Paris CAC 40 also shed 1.4 percent.

One trader in Tokyo said his 'head was about explode' when the news from Washington broke as prices for both Brent Crude and US Crude oil slumped by 3 percent.  

Trump, who has boasted of how he brought US markets to record highs, revealed he had the virus in a tweet shortly before 6am UK time: 'Tonight, @FLOTUS and I tested positive for COVID-19. We will begin our quarantine and recovery process immediately. We will get through this TOGETHER!' 

Market analysts said it was 'the last of the Biden pricing getting done' with investors banking that the illness will lay Trump low ahead of crucial campaign hours before November 3. 

U.S. President Donald Trump and first lady Melania Trump arrive at Cleveland Hopkins International Airport to participate in the first presidential debate with Democratic presidential nominee Joe Biden in Cleveland, Ohio, U.S., September 29, 2020

U.S. President Donald Trump and first lady Melania Trump arrive at Cleveland Hopkins International Airport to participate in the first presidential debate with Democratic presidential nominee Joe Biden in Cleveland, Ohio, U.S., September 29, 2020

The president tweeted to confirm the news shortly before 1am EST Friday

The president tweeted to confirm the news shortly before 1am EST Friday

Melania also tweeted to confirm the news

Melania also tweeted to confirm the news 

Trump's positive COVID-19 test throws markets pre-election curveball
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The news sent Dow futures tumbling 1.9 percent, while the S&P 500 shed 1.9 percent.

Safe-haven assets rallied, with the Japanese yen - a go-to in times of turmoil and uncertainty - rose to 105 per dollar, from 105.60 earlier in the day.


The greenback climbed against higher-yielding currencies including the Australian dollar and South Korean won, while gold jumped more than one percent and oil prices continued their downward spiral.

Japan's Nikkei sank 0.7 percent at the close of a volatile day in Tokyo following a hardware-related outage and traders were brought to their knees by the news from Washington.

'I feel like my head is about to explode,' said Takeo Kamai, head of execution services at CLSA Japan. 'When I heard the news (about Trump), I thought, 'Give me a break.'' 

Sydney, Singapore, Jakarta and Bangkok were all down more than one percent but Manila and Wellington both rose.  

Gold is trading up by around 0.2 percent, and investors have flocked to the safety of haven currencies. 

The president had taken a test after his close White House aide Hope Hicks had tested positive earlier in the day, meaning he will now have to go into quarantine just weeks before one of the most crucial elections the country has ever had.

His doctor Scott Conley said the couple intended to stay at the White House 'during their convalescence'.

'Rest assured I expect the president to continue carrying out his duties without disruption while recovering, and I will keep you updated on any future developments,' he added.

The White House cancelled a planned campaign rally in the crucial swing state of Florida on Friday, and 32 days before the November 3 vote against Democrat Joe Biden, it also looked certain Trump would have to cancel a slew of other trips scheduled for this weekend and next. 

Axi analyst Stephen Innes said the announcement would likely increase Biden's already good chances of winning.

'The risk-off reaction to Trump's positive Covid-19 test feels like the last of the Biden pricing is getting done,' he said in a note. 'The quarantine will mean he misses three swing state rallies - with critical Florida among them.'

Sentiment had already been weak as hopes for a new US rescue package fade.

Democrats pushed their latest $2.2 trillion proposal through the House, where they hold a majority, but without any opposition support, there is no chance it will be agreed by the Republican-dominated Senate.

House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin held a series of talks Thursday to find a way through the deadlock but when asked whether a chance still remained for an agreement, Pelosi replied: 'I don't know.'


WEDNESDAY: The crowd cheers as Air Force One arrives with President Donald Trump at Duluth International Airport on Wednesday. His counselor Hope Hicks had joined the president on the trip and felt poorly on the way home, according to reports

WEDNESDAY: The crowd cheers as Air Force One arrives with President Donald Trump at Duluth International Airport on Wednesday. His counselor Hope Hicks had joined the president on the trip and felt poorly on the way home, according to reports

OANDA analyst Jeffrey Halley added that 'having built hopes higher steadily over the past few sessions that the US Republicans and Democrats were edging closer to a new fiscal stimulus package, a sense of deja vu has swept markets'.

He said that with Republicans offering about $600 billion less than Democrats, their difference was 'less insurmountable than previous weeks. Sadly, it appears there is no sign that either side is prepared to cross the spread, or even meet in the middle'.

The need for a new deal was highlighted by news that Americans' personal income had fallen more than expected in September, while several big-name firms including Walt Disney, American Airlines and United had cut tens of thousands of posts. 

For crude, 'a move higher is only possible if a fiscal agreement is reached', said Axi's Stephen Innes.

Markets in Hong Kong, Shanghai, Mumbai, Seoul and Taipei were all closed for holidays.   

1 comment:

  1. They are panicking over nothing. There is no covid-19 test. Never has been. All the tests do is check for a covid anti-body. There are at least 7 different covid viruses and the test can not tell the difference between one strain and another. Trump probably has a cold. Plandemicseries.com. to see the scam this virus is.

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