Dow futures plunge 500 points after Trump tests positive for coronavirus; STI down 1.2%

Home Business Dow futures plunge 500 points after Trump tests positive for coronavirus; STI down 1.2%
Dow futures plunge 500 points after Trump tests positive for coronavirus; STI down 1.2%

TOKYO (REUTERS, BLOOMBERG) – US equity futures slid with Asian stocks and the US dollar climbed on Friday (Oct 2) after President Donald Trump said he had tested positive for the coronavirus, weeks ahead of elections.

Futures tied to the Dow Jones Industrial Average plummeted 500 points, S&P 500 futures and Nasdaq 100 futures were also in negative territory.

Meanwhile, the yield on the benchmark 10-year Treasury Note fell to 0.6578 per cent. Yields move opposite prices.

Trump's positive could cause a new wave of market volatility as investors brace for the hotly-contested presidential election in November.

"It has the potential to reduce Trump's campaigning ability. He's got a lot on and it's an interruption," said Sean Callow, currency strategist at Westpac in Sydney.

"It also hurts him as far as the whole narrative that it's really not much to worry about – it puts the COVID crisis itself back front and centre."

S&P 500 contracts had dipped earlier after the House of Representatives passed a US$2.2 trillion Democrat-only fiscal stimulus package that Republicans reject.

Mr Trump and First Lady Melania Trump were tested after Hope Hicks, one of his closest aides, was positive for Covid-19.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.27 per cent. Australia's S&P/ASX 200 index fell 0.98 per cent as a decline in oil and copper prices weighed on the country's resources sector.

Singapore's Straits Times Index was down 1.16 per cent as of 1:38pm local time.

Japan's Nikkei 225 index erased gains and fell 0.69 per cent as the Tokyo Stock Exchange resumed normal trading after its worst-ever outage brought the world's third-largest equity market to a standstill.

Euro Stoxx 50 futures were up 0.06 per cent, German DAX futures rose 0.03 per cent, but FTSE futures were down by 1.02 per cent.

Markets had been choppy early after a spate of data, including jobless claims and consumer spending, suggested that the plodding US economic recovery could be losing steam.

Holiday closures in other major Asian markets made for a subdued equity trading session ahead of the monthly US jobs data later on Friday.

China's stock and bond markets, foreign exchange and commodity futures markets are closed Oct 1-8 for the GoldeRead More – Source

[contf]
[contfnew]

straitstimes

[contfnewc]
[contfnewc]