*Trump says he and First Lady going into quarantine after tests
*Pound reverses loss as Johnson to intervene in Brexit talks
BBDXY
Bloomberg Dollar Spot
1,175.10
USD
+1.25+0.11%
SPX
S&P 500
3,380.80
USD
+17.80+0.53%
JPY
Japanese Yen Spot
105.2000
JPY
-0.3300-0.3127%
GBP
British Pound Spot
1.2940
GBP
+0.0049+0.3801%
European stocks fell with U.S. futures on Friday, while the dollar edged higher as markets took a risk-off turn after President Donald Trump said he had tested positive for the coronavirus.
Trump said both he and First Lady Melania Trump have contracted the virus and will now quarantine themselves, adding to uncertainty in the runup to the U.S. presidential elections next month. The CBOE volatility index jumped to a three-week high. The yen, gold and Treasuries, often seen as havens in times of market stress, all rose along with bonds in Europe. Crude oil extended losses.
In Europe, precious metals miner Centamin plunged as much as 20% after reducing its 2020 production guidance. The pound reversed a loss on news U.K. Prime Minister Boris Johnson will intervene in the Brexit negotiations for the first time since June when he holds talks with his European counterpart on Saturday.
Trump’s diagnosis adds to gloomy developments around the virus as big cities once again turn into hotspots. New York reported the most new cases since May, while London is said to be at a “tipping point” with infections continuing to rise. Monthly U.S. payrolls data later Friday will offer further clues on the enduring economic toll. Thousands of job cuts this week showed how firms are still wrestling with readjustments needed to survive.
”Market sentiment was already delicately balanced ahead of the November election, and today’s news only adds to the uncertainty,” said Karen Ward, chief market strategist for EMEA at J.P. Morgan Asset Management. “With such a wide range of outcomes and implications stemming from the President’s diagnosis, it’s too soon to ascertain what the final market direction will be.”
Meanwhile, hopes of further fiscal measures are fading. S&P 500 contracts weakened earlier after the House of Representatives passed a $2.2 trillion Democrat-only stimulus package that Republicans reject.
Elsewhere, Japanese stocks were down about 1% after trading on the Tokyo Stock Exchange resumed following Thursday’s outage. Markets in China, Hong Kong, Taiwan, India and South Korea are shut for holidays. Copper extended Thursday’s slide, when it lost more than 4%.
These are the main moves in markets:
Stocks
- Futures on the S&P 500 Index sank 1.2% as of 9:17 a.m. London time.
- The Stoxx Europe 600 Index declined 0.4%.
- The MSCI Asia Pacific Index decreased 0.3%.
- The MSCI Emerging Market Index decreased 0.1%.
Currencies
- The Bloomberg Dollar Spot Index increased 0.2%.
- The euro fell 0.2% to $1.1723.
- The British pound climbed 0.1% to $1.2908.
- The onshore yuan strengthened 0.2% to 6.799 per dollar.
- The Japanese yen strengthened 0.3% to 105.20 per dollar.
Bonds
- The yield on 10-year Treasuries fell one basis point to 0.67%.
- The yield on two-year Treasuries decreased less than one basis point to 0.13%.
- Germany’s 10-year yield dipped less than one basis point to -0.54%.
- Britain’s 10-year yield fell one basis point to 0.229%.
- Japan’s 10-year yield gained one basis point to 0.022%.
Commodities
- West Texas Intermediate crude dipped 2.9% to $37.59 a barrel.
- Brent crude declined 3% to $39.71 a barrel.
- Gold strengthened 0.3% to $1,910.79 an ounce.
— With assistance by Chikako Mogi, Nancy Moran, Adam Haigh, and Joe Easton.
Credit: bloomberg.com
