Dow Futures Plunge 400P... Global Markets Shake as Trump Tests Positive for COVID-19

European Stocks Start Down 1%... Pre-Market New York Stocks Also Weak
Investor Sentiment Shrinks Amid Uncertainty... US Treasury Prices Rise

[Image source=Yonhap News]

[Asia Economy Reporter Naju-seok] Global stock markets plunged following news that President Donald Trump and his wife Melania tested positive for COVID-19.

On the 2nd (local time), according to foreign media including CNBC, European stock markets opened down more than 1%. Germany's DAX index fell 1.11% to 12,589.73, while in New York, Dow futures plunged more than 400 points. Nasdaq futures also dropped 2.23% to 11,316.25.

The stock decline was due to increased uncertainty after President Trump's positive diagnosis.

The New York Times (NYT) stated, "The political leadership of the world's largest economy, the United States, is in question," adding, "His positive diagnosis has injected tremendous uncertainty into financial markets." It also noted that with about a month left until the November 3rd reelection, doubts about campaign activities are growing.

CNBC cited a memo from Adam Crisafulli of investment firm Vital Knowledge, saying, "Politically, Trump's diagnosis will be more favorable to Democratic candidate Joe Biden."

Above all, there is analysis that this will be a negative factor for economic reopening. President Trump had prioritized the economy despite the spread of COVID-19. However, with his positive diagnosis, the focus inevitably shifts more toward quarantine measures. The NYT evaluated, "Investors more sensitive to economic and policy changes quickly sold off."

The yield on the 10-year U.S. Treasury, a safe-haven asset, fell by 0.014%. A decline in yield means a rise in price.

This content was produced with the assistance of AI translation services.