Stocks are falling and oil prices are dropping .. How did Trump’s announcement of Corona affect the global economy?


The US Wall Street indexes plunged at the opening, Friday, October 2, 2020, following the announcement that US President Donald Trump was infected with the Corona virus, and weak data on jobs was also recorded, while the announcement also reflected on the global oil market, after That its price has decreased significantly.

On Friday, the White House announced that Trump and his wife were infected with the virus, and that they would remain quarantined in the White House.

Stocks decline: The Dow Jones Industrial Average opened 280.51 points, or 1.01%, to 27,536.39 points.

The Standard & Poor’s 500 Index also decreased by 41.86 points, or 1.24%, to 33389.94 points, while the Nasdaq Composite Index of Technology stocks fell 243.98 points, or 2.15%, to 11,082.53 points.

For its part, the main European stock exchanges also recorded a decline when trading began on Friday, following news of Trump’s injury. The FTSE index in London fell 1.1% to 5812.76 points, the DAX index on the Frankfurt Stock Exchange 1.4% to 12,550.73 points, and the “CAC 40” index in the Paris Stock Exchange 1.4% to 4758.69 points.

In Asia, the stock markets of Sydney, Singapore, Jakarta and Bangkok fell by more than 1%, against the rise in the Manila and Wellington stock exchanges. On the other hand, the Japanese yen, considered a safe haven, rose at a time of confusion.

The shares of chemicals, mining, and oil and gas were at the forefront of the sectors, which recorded a decline in early trade by between 1.3 and 1.5 percent.

Jobs also: Further damage to investor sentiment was official data released on Friday, which showed that US job growth continued to slow more than expected in September.

According to the Bureau of Labor Statistics data, the US economy added in September, 661,000 new jobs only, excluding agricultural activities, down from 1.4 million jobs in August, 1.8 million in July, and 4.8 million jobs in June.

And the Bureau of Labor Statistics data on jobs came less than analysts’ expectations, with growth of at least 800,000 jobs.

US job growth slowed more than expected in September, as the recovery from a COVID-19-driven downturn eased as government funds ran out and the pandemic continued, leaving many at risk of becoming permanently unemployed.

And in the latest monthly employment report before the presidential elections scheduled for November 3, the US Labor Department said on Friday that jobs in non-agricultural sectors increased by 661,000 last month, after rising by 1.489 million in August. Economists polled by Reuters had expected an increase of 850,000 jobs in September.

Oil did not deliver a turn: In the same context, aOil prices fell 4%, Friday, after the US president was infected with Covid-19 and negotiators failed to agree on a stimulus package in the United States, at a time when the rise in global oil production threatens to crush a weak recovery in prices.

Brent crude fell on the news of Trump’s injury, and it fell 1.67 cents, or 4.1%, to $ 39.26 a barrel, by 10.38 GMT. US crude fell $ 1.62, or 4.2%, to $ 37.10.

US crude and Brent crude are heading towards a decline of 8% and 6%, respectively, this week, for the second week in a row.

“The president is not helpless”: In the same context, a senior White House official told “Reuters” news agency, that US President Donald Trump and his deputy, Mike Pence, will work from two separate headquarters, hours after the president announced that he had tested positive for the Coronavirus.

The same official, who requested anonymity, stated that Trump was “not incapable” in performing his duties, but added that the President’s and Vice President’s staff will also work separately from the other; “An increase in eagerness.”

The official said, “The president is not incapable of performing his duties. He is already working from his residence … What we did out of extreme caution is that we separated the vice president from the president … we separated the employees; in case something happens.”

Only four weeks remain until the presidential election on November 3, as polls show Democrat Joe Biden’s lead over the Republican president.


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