Possible Effects of Trump Testing Positive for Coronavirus on the Economic Market
By Space Coast Daily // October 21, 2020
In the early hours of Friday morning, the 2nd of October, 2020, the President of the United States of America, Donald Trump, tested positive for the coronavirus.
The 74-year-old President Trump went on Twitter to announce that he and his wife had contracted the virus and are now taking necessary quarantine measures.
World leaders have since sent their good wishes to the President and his first lady. However, some grounds are being shaken by this. This is news with a really big impact on global welfare especially on the economic market of the world.
Economic Impact of the POTUS COVID-19 Infection
European stocks fell and the Asia stock market also backtracked. The U.S. stocks also dropped after the news of Trump testing positive for Covid-19. Oil dropped after the news as well.
The fall of oil started in June and Brent Crude Oil was already at its lowest, dropping at least 4.8% below its prior value.
The U.S oil is approaching a 5% decline by the end of this week. The crude market was just starting to recover from the fall in September until this news left the market in a decline. The decline of the market is generally attributed to the market’s lack of tolerance for uncertainty.
After the news broke, the global market is on a decline as the investors are not happy with the President’s sudden situation with the coronavirus and the unexpected chaos that it has brought to the stock market.
The investments that have fallen since the news broke are economic and policy-related investments so far. Investors have now begun to sell stocks and reduce any incoming risks as they are being hit by the sudden occurrence. The global equity market plunged and left investors bothered.
Trump’s COVID-19 contraction has also pulled a huge weight on the crypto market more than would have been expected. There was a fall in the price of cryptocurrencies; BTC dropped by 3.4%, ETH dropped by 5.9%, XRP dropped by -3.61% and BCH dropped by -4.76%. Analysts have however praised the resilience of Bitcoin during the cycle of negative news that has hit the market this week as the news didn’t take the currency below the expected level for losses.
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It is true that some other parts of the market rose or remained at their base, Gold traded higher and the dollar rose high in Forex markets too. However, the sudden occurrence is still a very huge concern for the investors of the country.
Especially seeing that there was a just-concluded presidential debate between Joe Biden and Donald Trump. Presently, the President is mandated to cancel all in-person events which potentially includes the second presidential debate with his opponent, Joe Biden. This occurrence has political implications and is already leaving its trail with the President’s mandatory quarantine.
The fear of some economists has heightened based on the fact that they believe that the administration Joe Biden promises would offer fewer advantages and support to financial markets that America deals with. Trump’s current situation with the Covid-19 disease is fueling political uncertainties about the coming election in the US.
For now, there is a lot of attention on how the government would be run while the President is in quarantine and advisers are already discussing how the government is going to go on if the President’s condition worsens. The president is experiencing minor symptoms but his age is still of serious concern to the citizens.
Alongside age is the report that shows that the President has at least one underlying medical condition which could attract complications along the way. There is also a rising worry about whether senior government personnel may have contracted the virus.
A Republican National Committee Chairwoman also tested positive on Wednesday but refused to reveal her diagnosis till Trump announced his. There is a high chance that officials may have contracted the virus and would be required to quarantine. Officials who met the President in person have also been required to take necessary measures and precautions.
The total number of cases in the United States is going close to 7.28 million with a death toll of close to 208,000 people. Around 38,500 new cases and over 800 deaths were reported in the United States on October 1, 2020.
Analysts are predicting that the US might be going into a second wave very soon. These numbers and the recent case of the president is enough to overwhelm the market and increase skepticism in the economic market in this period