Donald Trump's COVID-19 diagnosis rattles financial markets
European stocks slide in early trading while US stock markets have signalled shares will open聽down later following the news.
Friday 2 October 2020 16:40, UK
Global financial markets have been rattled after US President Donald Trump said he and his wife had tested positive for the coronavirus just weeks ahead of the election.
European stocks slid in early trading while US stock markets have signalled shares will open down later.
The UK's top flight FTSE 100 Index dropped 1% in early trading, while the pan-European STOXX 600 fell 0.5%.
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The German DAX and France's CAC 40 both dropped by 0.8%.
Meanwhile, stock market futures indicated all three of America's main indexes - the Dow Jones, the S&P 500 and the Nasdaq - are each set to fall by at least 1% when trading starts.
The MSCI world equity index, which tracks shares in 49 countries, was down 0.2%.
Oil prices also fell by 3% to dip below $40 a barrel.
The financial jitters come after Mr Trump announced on Twitter that he and his wife had been tested for coronavirus after Hope Hicks, a senior adviser who recently travelled with the president, tested positive.
He later tweeted he and the first lady had tested positive with just weeks to go before the presidential election on 3 November.
He said: "We will begin our quarantine and recovery process immediately. We will get through this TOGETHER!"
Mr Trump's infection could cause a new wave of market volatility.
Khoon Goh, head of Asia research at ANZ in Singapore, said: "At this stage, it is too early to tell yet how this may affect the election outcome. Markets have sold off in a knee jerk reaction to the news, which is understandable."
Francois Savary, chief investment officer at Swiss wealth manager Prime Partners, said "We may have to wait until the end of the weekend for more clarity on the situation.
"The reaction has been a bit excessive with US stock futures. It doesn't mean the US administration is not able to function.
"It will weigh on market today and early next week but will not induce a long-lasting correction if the infection is
contained to Trump."