[ad_1]
In Frankfurt, the DAX and EuroStoxx50 each fell about 1.2 percent to 12,555 and 3,155 points, respectively. In Asia too, investors had ditched stocks. On Wall Street, US futures fell as much as two percent in the afternoon.
“The uncertainties would increase again”
Trump announced via short message service Twitter that he and his wife Melania had tested positive for the pathogen. For the US president, this comes “at an extremely unfavorable time,” said Thomas Gitzel, chief economist at VP Bank. Markets could turn turbulent, especially if Trump has been through a serious illness. “The already existing uncertainties would increase again.”
The dollar was in demand as a safe haven and gained 0.3 percent against a basket of currencies. In return, the euro fell as much as 0.5 percent, but then again limited its losses. Government bonds rose, their yield fell to minus 0.551 percent. Gold, used as a metal in crisis, was also in demand, trading 0.2 percent higher at $ 1.907 a troy ounce. “In addition to the crown disease of the US president, the uncertainty surrounding the Brexit negotiations is also fueling interest in the precious metal,” said trader Alexander Zumpfe of precious metals specialist Heraeus.
The severity of the corona course is decisive
The deciding factor now is the consequences of the infection for the president of the United States, depending on how long the malaise lasts in the market, said Francois Savary, director of the Swiss asset manager Prime Partners. “We may have to wait until the end of the weekend to get some clarity. The initial reaction may have been a little over the top. The infection does not mean that the US government is not working.” Vice President Mike Pence’s crown test result was negative, according to a spokesperson.
How Stock Exchanges React to the US Elections
Financial markets generally tend to view a Republican election victory positively because they expect lower taxes and less regulation. On the contrary, if Biden wins the election, higher taxes are expected, which should be evaluated negatively. At the same time, however, the Democrat is expected to increase spending on infrastructure. “Depending on the winner of the election, different companies should benefit, but overall we hardly see any major differences in market effects,” Commerzbank experts said. “From a markets point of view, it would be important for the winner to be determined quickly.”
The price of oil fell on the commodity market. A barrel of US light oil was about four percent cheaper at $ 37.08 (€ 31.55), while North Sea Brent oil was also four percent less expensive at $ 39.24. The price of oil is heading for a weekly decline of six percent in the United States and seven percent for Brent. This is the second consecutive weekly decline.
Shares of oil companies like BP, Dutch and Total plummeted on the European stock market. If Trump’s democratic rival Joe Biden wins the US election, Iran could possibly bring more oil to the market because Biden is behind the Iran nuclear deal, said Bjarne Schieldrop, a commodities expert at SEB. Since the beginning of the year, oil companies’ shares have lost half their value.
In France, the shares of telecommunications companies Orange, Bouygues and Iliad rose to 4.5 percent. The companies obtained 5G frequencies in the auction. Bayer continued its downward trend and lost another four percent. They tumbled about 13 percent on Thursday due to a bleak business outlook and special cancellations worth billions.
(Those: Apa / Ag.)
