By Herbert Lash and Elizabeth Howcroft
NEW YORK/LONDON (Reuters) – Global inventory markets collapsed and investors amassed gold and japanese yen on Friday after U. S. President Donald Trump tested for coronavirus, increasing market uncertainty just 32 days before the U. S. election.
Trump’s explosive announcement has led investors who are already involved in an elusive coronavirus relief program aimed at strengthening a slowing U. S. economy, as evidenced by the slowdown in task expansion in September payroll data.
Gold recorded its week at 8 even after tying profits, while the yen rose sharply before falling slightly.
What Americans think of the pandemic when they vote on November 3 may be just the end result of the election, which is quite unusual, said Michael Arone, a leading investment stratateg for the U. S. SPDR business at State Street Global Advisors in Boston.
“Today’s news shows some weakness in Trump’s re-election campaign,” he said. “Diversity of effects has expanded and some of the excessive maximum effects are more likely, and markets don’t like that. “
Trump has mild symptoms, but will continue to paint after positive, administration officials said.
The major U. S. inventory indices are the only ones in the world. But it’s not the first time They fell, but regional indices in Europe ended up rising after an initial sale on Trump news. The FTSEurofirst 300 index rose 0. 22% to 1,405. 35 and the STOXX Europe 600 index rose 0. 25% to 362. 69.
MSCI’s benchmark for global equity markets fell by 0. 69% to 564. 07, while its emerging market index fell by 0. 29%.
On Wall Street, the Dow Jones Industrial Average fell 0. 48%.
The duration of the aversion will depend on the extent of the infection at the White House, said Francois Savary, leading chief investment director of Prime Partners, a Swiss asset manager.
“This will weigh on the market early next week, but it won’t lead to a lasting correction if the infection is contained in Trump,” he said.
On Friday, the Department of Labor’s employment report very often, the last before the presidential election.
Employment increases in September were the weakest since the start of the task recovery in May and left the US hard labour market in the process. But it’s not the first time Recovering the 22. 2 million lost tasks in March and April, indicating a slowdown in expansion as the fourth quarter approaches.
The non-agricultural wage bill in the United States increased through 661,000 jobs last month, below consensus expectations of 850,000, prompting a very negative reaction from economists.
But Arone and Steven Ricchiuto, america’s leading economist at Mizuho Securities USA in New York, said the loss of government jobs, more commonly seasonal in education, had reduced numbers, while personal sector gains exceeded overall expectations.
“The net result is that seasonal points have led to a very, very dramatic decline in the national and local part, especially in the domain of education,” Ricchiuto said. “However, the personal sector component continues at a stable pace.
He has lost more than 200,000 jobs, Arone said.
“These loss of government tasks are real, make no mistake. But overall, the personal sector stays pretty well,” he said.
BETS OFF
With more uncertainty about the election, Betfair has suspended bets on its outcome.
Trump said on Twitter Thursday night that he and the first girl, Melania Trump, were going to be quarantined after an assistant tested positive for the virus, prompting a change in the dollar and yen. The dollar index rose 0. 128% and the euro fell by 0. 31% to $1,1711. Later, Trump tweeted that he and his wife had tested positive.
The Japanese yen opposed 0. 15% to the dollar at 105. 37 per dollar.
The Australian dollar, which serves as a liquid proxy for dicy assets, is 0. 23%.
Germany’s 10-year benchmark bond fell 0. 2 basic issues to -0. 539%.
Crude oil costs fell 4% after Trump tested COVID-19, which blew up strong assets, and emerging global crude oil production threatens to overwhelm the weak recovery in the oil market.
Brent’s futures closed at $1. 66 to $39. 27 a barrel. Crude oil futures fell $1. 67 to $37. 05 a barrel.
Gold reduced initial gains to decrease while stocks reduced losses.
“If more senior U. S. government executives are positively diagnosed, gold may be ready for a prolonged uptick,” said Jeffrey Halley, senior market analyst at OANDA.
Spot gold fell 0. 20% to $1,901. 27 an ounce. Gold futures stabilized 0. 5% in 1907. 60.
(Information through Herbert Lash in New York and Elizabeth Howcroft; additional information through Rachel Armstrong in London; Edited through Dan Grebler, Nick Zieminski and Paul Simao)