The Dow Jones opened 394.2 points or 1.42% down on Friday morning [US time] as the US wakes up to the news that President Donald Trump and Melania Trump have tested positive for coronavirus.
Trump tweeted: “Tonight, @FLOTUS and I tested positive for COVID-19. We will begin our quarantine and recovery process immediately. We will get through this TOGETHER!”
European equity markets were under pressure on Friday morning, with the German index down more than 1% on the day.
While markets have bounced back from the initial knee-jerk reaction, sentiment has turned somewhat sour and we could see a switch to risk-off in the near-term.
Milan Cutkovic, Market Analyst at Axi said, “The effects of Trump catching the coronavirus on the upcoming election is difficult to assess at this point. He might only have mild symptoms and will be able to continue carrying out his duties.”