[Europe Open] Early Gains Amid Trump’s COVID-19 Diagnosis

On the 4th (local time), U.S. President Donald Trump came out by car from Walter Reed Military Hospital in Bethesda, Maryland, where he was hospitalized due to the novel coronavirus infection (COVID-19), and waved his hand as he passed in front of supporters.

European stock markets showed slight gains in early trading on the 5th despite uncertainties surrounding U.S. President Donald Trump's positive diagnosis for COVID-19.

As of 4:53 p.m. local time, the Euro Stoxx 50 index rose 11.37 points (0.37%) from the previous close to 3,2102.75.

The UK's FTSE 100 index traded up 26.68 points (0.45%) at 5,928.80. France's CAC 40 index increased by 18.30 points (0.38%) to 4,833.18, while Germany's DAX 30 index rose 42.09 points (0.33%) to 12,731.13.

Investor anxiety had increased late last week following news that President Donald Trump was hospitalized due to COVID-19, but concerns eased somewhat after reports of his early discharge.

White House medical staff, including Dr. Sean Conley, held a press conference at Walter Reed Military Hospital on the 4th local time, stating that President Trump's condition was stable and that he could be discharged as early as the 5th.

This news led to a broad rise in Asian stock markets, and U.S. stock index futures also showed strength. Oil prices, based on West Texas Intermediate (WTI), rose nearly 2%, highlighting gains in oil-related stocks.

Domestic financial markets also closed the first trading day after the holiday break on a stable note. With investor sentiment recovering, the KOSPI rose more than 1%, and the Korean won weakened by over 6 won against the U.S. dollar. Bond yields also increased.

On the 5th, the KOSPI closed at 2,358.00, up 30.11 points (1.29%) from the previous trading day. Foreign and institutional investors jointly net purchased stocks worth over 500 billion won, driving the index higher.

Some in the financial market had speculated that market volatility might increase on the first day of trading after the Chuseok holiday due to the news of President Trump's diagnosis, but the feared market turmoil did not materialize.

Instead, the market focused on the White House medical team's statement that President Trump's condition was not severe and on expectations for a new U.S. stimulus package agreement.

The foreign exchange market also showed stability.

On the day, the won/dollar exchange rate in the Seoul foreign exchange market closed at 1,163.4 won per dollar, down 6.1 won from the previous day's closing price (indicating a stronger won).

Risk asset preference driven by expectations of a new U.S. stimulus package outweighed the safe-haven demand triggered by President Trump's diagnosis.

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