Trump, Paris coronavirus alert hit European stocks

Trump says he and his wife Melania had tested positive for Covid-19 and were going into quarantine


Reuters October 02, 2020
US President Donald Trump delivers his acceptance speech as the 2020 Republican presidential nominee during the final event of the Republican National Convention on the South Lawn of the White House in Washington, US, August 27, 2020. PHOTO: REUTERS

 European stocks slid on Friday after US President Donald Trump tested positive for Covid-19, hitting equity markets globally.

The pan-European STOXX 600 .STOXX fell 0.5%, although pulling back from early losses of as much as 1.1%.

The German DAX .GDAXI and France's CAC 40 .FCHI dropped 0.8% each, while UK's FTSE 100 .FTSE declined 0.6%.

Trump said on Friday that he and his wife Melania had tested positive for Covid-19 and were going into quarantine, with just weeks to go before the Nov. 3 presidential election.

“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,” said Khoon Goh, head of Asia research at ANZ in Singapore.

Meanwhile, Paris is set to be placed on maximum Covid-19 alert from as soon as Monday, a move likely to force the closure of restaurants and bars and impose further restrictions on public life.

Data showed international tourist arrivals to Spain fell 76% year-on-year in August, as restrictions related to the pandemic dissuaded many from travelling. Madrid, which is Europe’s worst Covid-19 hotspot, will also go back into a lockdown.

Travel & leisure shares .SXTP fell 0.5%.

Chemical stocks .SX4P fell the most with a 1% loss, followed by automakers .SXAP and industrial .SXNP sectors.

Gold miner Centamin CEY.L slumped 19.6% to the bottom of STOXX 600 after it forecast a fall in annual production as it delayed some open-pit mining operations at its key Sukari mine in Egypt.

Shares in French telecom companies Orange ORAN.PA, Bouygues Telecom BOUY.PA and Iliad ILD.PA rose between 0.8% and 3.9% following the results of an auction of the country's 5G spectrum sale.

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