Global markets dip on Trump diagnosis
Global markets dropped early Friday after U.S. President Donald Trump said that he and first lady Melania Trump had tested positive for the coronavirus.
European markets opened more than one per cent lower in early trading. Wall Street was set to open lower by a similar amount, according to futures markets, but intense volatility suggested that investors will still be parsing how strongly to react to the news.
The news injects a huge amount of uncertainty into financial markets, and uncertainty is what investors like least. It throws the political leadership of the world’s largest economy into doubt. It also raises questions about Trump’s campaign for re- election against former vice-president Joe Biden, his Democratic challenger. The election is set for Nov. 3.
The market moves early Friday reflected those jitters. Investors sought to put money in investments that are traditionally considered safe havens.
Prices rose for U.S. Treasury bonds, sending yields lower. Gold prices also rose, as did the value of the Japanese yen against other currencies.
Investments that are more sensitive to economic and policy shifts fell quickly. Oil futures slid Friday along with stocks, while other commodities fell, too.
In Japan, where the news broke late on the trading day, stocks were nearly 0.7 per cent lower after spending most of the day in positive territory. Most other Asian markets were closed for autumn holidays.