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LONDON – News that President Donald Trump and his wife, Melania Trump, tested positive for Covid-19 shook markets on Friday. European stock exchanges opened in a dip and the stock futures market fell back in the United States, where stock exchanges have yet to open.
Analysts say it is too early to assess whether and how the US president’s illness could change the presidential race, just weeks before the country’s elections. But they recognize that the diagnosis brings instability to the financial system.
Budget:A few weeks before the elections, Trump sanctions the budget and prevents the closure in the US.
Around 8 a.m., the London Stock Exchange fell 1%. In Paris, the drop was 2% and, in Germany, the main stock market index, the DAX, fell 1.1%. Before the open, the European equity futures market fell 1%.
In the United States, the falls are even greater. The Dow Jones index of the New York Stock Exchange fell 1.6% in the futures market. S&P fell 1.7% and the Nasdaq technology exchange fell 2.3%.
Trump announced on Twitter on Friday that he and first lady Melania tested positive for Covid-19 and were quarantined. The diagnosis came after news Thursday that Hope Hicks, one of the president’s closest aides, had the disease.
– It is still too early to say how much this (Trump’s illness) may affect the elections. Markets are selling on a chill reaction in the stomach, which is understandable, said Khoon Goh, head of analytics for Asia at ANZ in Singapore.
In Asia, the stock exchanges of China, Hong Kong and South Korea were closed for the holidays. In Japan, the capital square resumed operations after Thursday’s trading session was canceled due to a technical problem.
The Nikkei index fell 0.7%, with news of Trump’s illness and possible changes in the political framework in the US.
The chaotic clash between Trump and his Democratic rival Joe Biden earlier this week, during the first presidential debate, had already increased pressure on markets that were considered riskier.
Trump’s refusal to say he would acknowledge the November 3 election result in the face of defeat prompted a warning in the financial sector.
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