President Donald Trump tweeted early today, revealing that his COVID-19 test result alongside first lady Melanie Trump’s came out positive. This is dreadful timing for the presidential candidate as the Election Day is coming in fast and his next clash with rival Joe Biden is set in 2 weeks.
Tonight, @FLOTUS and I tested positive for COVID-19. We will begin our quarantine and recovery process immediately. We will get through this TOGETHER!
— Donald J. Trump (@realDonaldTrump) October 2, 2020
Amid the shocking news, global stocks dropped as the sitting President announced his quarantine a month before the day of election on November 3. London’s FTSE 100 opened 1.03% lower today and is currently at 0.49% loss. Tokyo’s Nikkei 225 closed the day with 1.30% in the red.
As expected, the stock market futures of US main indices also stumbled. S&P500 (SPX500) fell by 1.62% as of writing (10:00 am UTC), Nasdaq 100 (NDX100) dropped by 2.23%, and Dow Jones (DJI30) is down by 1.53%.
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On forex markets, the Euro gained traction as the EURUSD pair plunged by 0.21% so far today. The Japanese yen made a sharp push against the US dollar (USDJPY fell by 0.37%).
Gold recuperates today by gaining 0.25% so far. Whereas, Brent Crude Oil is down by 3.50% and WTI Crude Oil suffered another worse day, this time with a 3.60% loss as of writing.
According to IG Group Senior Market Strategist Jingyi Pan, this is a critical time for the US election and President Trump’s absence could complicate it more. Earlier this week, the incumbent president faced former Vice President Biden in a heated 90-minute battle, with Biden breaking his cool saying “Will you shut up, man? … You’re the worst president America has ever had.” Trump fired back at him saying “China ate your lunch.”
The markets are rattled. Trump’s coronavirus contraction will be a hideous drawback on his side. Adding to the uncertainties is the nonfarm payroll (NFP) data to be released today at 12:30 pm UTC.
High volatility is brimming. Margin traders will do well to take advantage of major price fluctuations in several markets.
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