After the POTUS announced that he and Melania were coronavirus positive, the US Stock futures fell, along with European equities. In a tweet, the President of the United States stated that he and his wife had tested for the coronavirus. They had quarantined themselves and had begun the recovery process. Dr. Conley, who is the private physician for the President, mentioned that both the President and his wife were pretty fine, and without complications.
Wall Street was already pointing towards a weak opening with decreasing job data. Dow futures were already down 300 points, with S&P 500 falling 1.4%. Finally NASDAQ too sank 2%.
Stock futures Falls as Trump testing positive for COVID-19
The European market, Stoxx Europe 600 fell 0.5% with the German DAX and the French CAC 40 falling 0.8%, along with FTSE 100 going down by 0.7%.
The positive result of the President’s coronavirus test came mere hours after it was announced that Hope Hicks, the senior aide who was travelling with them, had contracted the virus. While Trump is receiving the best possible treatment, his age puts him in a ‘high-risk’ category. Considering the deal toll has crossed 200,000 in the United States of America, Donald Trump could be at a huge risk.
Unfortunately, the news itself comes just one month before the Presidential elections of 2020, and after a week of the contentious debate between Biden and Trump. The Senior Analyst at Asia Pacific Oanda, Jeffrey Halley has mentioned how it could be a huge negative for the market. If coronavirus has reached the upper factions of the US government including the senate, it would simply mean that the two houses would have to stop any discussions on fiscal stimulus for the time being. And that would lead to further stock future falls. The Democrat House had already approved a stimulus plan worth $2.2 trillion as talks went on between Steven Mnuchin, the Treasury secretary, and Nancy Pelosi. But Halley further mentioned that if Trump actually recovered from this, he might turn the tide in their favor. His recovery story would erode any lead that Biden might have accrued over the period.
The development needs to be watched closely, for markets hate uncertainty. Since it is quite expected that Trump’s diagnosis would actually drown out any of the nonfarm payrolls the same afternoon. The best way to deal with it would be to start looking for equities with an option to move into risk hedging.
Stock Future Falls in Europe Markets
European data has displayed eurozone inflation which is still falling for the second month straight. With Boris Johnson, the Prime Minister of the United Kingdom going to engage in talks with President Ursula von der Leyen, the head of the EC, this would be Great Britain’s last attempt to forge a security and trade deal.
But the investors’ main woe continues to be the coronavirus result of Donald Trump, which could very signify yet another stock future fall in this American economy.