- Stock markets plunged in Asian trade after President Trump had tested positive for Covid-19 hitting market sentiment.
- The US Dollar Index’s rebound is shaky despite risk aversion and a shift in market sentiment.
- S&P 500 index could fall further from yearly high
Risk sentiment turned sour in the Asian session, on news that President Donald Trump had tested positive for coronavirus
S&P 500 futures fell Australia’s ASX 200 index fell 1.67%.The haven- US Dollar and Japanese Yen soared versus major peers.
Gold climbed 0.53% and silver over 1%. yields on US 10-year Treasuries dropped below 66 basis points.
Eurozone inflation is in focus ahead of the US non-farm payrolls report for September.
Safe Haven inflows after Trump Tests Positive to Covid-19
President Donald Trump’s testing positive to covid sent equity markets sharply lower in Asia-Pacific trade, with S&P 500 futures tumbled 1.85% and the haven- US Dollar spiking higher versus major peers.
The unexpected announcement could boost Joe Biden’s election prospects given that Trump has continually questioned social distancing measures and questioned mask wearing to prevent the spread of covid.
Biden leads Trump substantially in the polls. His lead has been extended since the first Presidential debate on September 30.
second debate scheduled for October 15 and it is unclear what will happen. Trump will be allowed out of the two week quarantine on the day of the debate.
White House physician Scott Conley expects Trump will continue with his duties without disruption while recovering”, in which case the impact on the President election schedule will be limited. President’s recovery will be closely monitored over the weekend. Any notable deterioration in his health could drag on sentiment and boost safe havens.
