Traders got nervous after Trump’s COVID announcement

By Peter Bukov|

Published: October 02 2020, 07:38 GMT+0

Traders got nervous after Trump’s COVID announcement

Tags: , ,

Equities around the world plunged on Friday, and EU bourses were set to open 1% lower. The US benchmarks were down 1.5% during the Frankfurt session as President Donald Trump, and his wife Melania have tested positive for the coronavirus.

However, it looks like the dip is already being bought as futures are well off their intraday lows, and we wouldn’t be surprised if indices actually close green today. Remember, more stimulus is coming, and so far, bad news has been good news for the markets. 

Oil prices weakened Friday, continuing the sell-off from the previous session, and the WTI benchmark was down another 3% today after losing 4% on Thursday. Copper was seen 1% lower, consolidating after Thursday’s 5% plunge. It might seem that investors in cyclical assets are expecting further weakness in the global economy, mainly due to the COVID resurgence and more lockdowns. 

Later in the day, European CPIs will be released, and inflation should remain well below the ECB’s targetted 2% mark. 

Moreover, the US labor market data for September are due, and the NFP number is forecast to ease to 850,000 from 1,371,000. The unemployment rate is expected to decline further to 8.2%.