You are here: Home - Investing - Experienced Investor - News -

Trump’s coronavirus diagnosis unsettles markets

0
Written by: Emma Lunn
02/10/2020
Donald Trump and his wife Melania have both tested positive for coronavirus and have begun a period of self-isolation.

The announcement of the US president’s positive test comes just over a month before the presidential elections on 3 November where he faces Democratic challenger Joe Biden.

Trump’s diagnosis has created a sense of instability in the financial markets and has led to falls in the European stock markets this morning.

The FTSE100 fell 0.6% to 5,841 with energy, mining and consumer cyclicals the worst performing parts of the market.

Germany’s DAX index traded 0.9% lower. Pre-market indicative prices suggest a 1% to 1.2% decline for the main indices in the US when its markets open later.

S&P 500 futures, which are relatively thinly traded in the early European hours, were down 1%.

Trump’s positive test also raises the question of how the US presidential election will play out – will he be well enough to continue the debating while self-isolating, and will the elections be postponed?

James Bentley, director of Financial Markets Online, says: “On a day when US jobs numbers were supposed to be the big news, markets are instead chewing over how the president’s ability to do his job will be affected by his illness.

“As Europe grapples with a surge in new infections – and introduces steadily tougher restrictions in an effort to keep a lid on them – the prospect of a power vacuum at the heart of the world’s most powerful economy has got many worried on both sides of the Atlantic. With US futures sharply down already, Friday is set to be a rocky day for the American markets.”

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, says: “There are already signs of a flight to safety with both the dollar and the yen rising sharply, and gold on the rise too.

“US treasuries have also jumped, as investors seek a place to hide amid what they fear could be a period of further volatility with just a month to go before the election. The virus is touching every part of US society, from the president to Amazon’s 20,000 warehouse and cashier staff in the United States who have tested positive for the virus so far.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Everything you wanted to know about ISAs…but were afraid to ask

The new tax year is less than a fortnight away and for ISA savers or investors, it’s hugely important. If yo...

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week