Market shivers as Trump is infected

Hong Kong: Financial markets shivered after US President Donald Trump tweeted he had tested positive for COVID-19 amid concerns how US government leadership can effectively function through the pandemic just week ahead of the presidential elections.

Fund managers said it could hit the credibility of US economic reopening which will be questioned even more strongly and also create doubts among investors about the shape of the recovery.

Havens benefitted from safety bids – Gold surged 0.5% to $1,914.87 an ounce, US Treasuries jumped with the 10-year yield falling a basis point to 0.66% and yen jumped 0.4% to 105 to a dollar.

“De minimus President Trump will be in isolation for the next two weeks. Other members of the White House inner-sanctum could also be found to have contracted the virus which will impair decision-making,” Gary Dugan, CEO at Purple Asset Management, said.

“Aside from the President, there is a clear and present danger to the US government leadership and how effectively it can function through this crisis.”



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