Stocks and currencies under pressure after Trump reports coronavirus

Stocks and currencies under pressure after Trump reports coronavirus

Stocks and currencies under pressure after Trump reports coronavirus

(Reuters) – Emerging market stocks and currencies were slightly lower on Friday as investors turned to safe assets like the dollar, yen and gold after US President Donald Trump announced his positive coronavirus test.

US President Donald Trump said on Friday that he and First Lady Melania Trump have coronavirus and that they have gone to quarantine.

The Emerging Markets Index fell 0.2%, but may post a weekly gain.

The Emerging Markets Currency Index traded without sharp fluctuations immediately after the release of the message, which led to volatility in the markets, given that there is a month before the US presidential election.

“(Coronavirus infection) is hurting Trump's ability to campaign and there is less time before the election,” said Ayako Sera of Sumitomo Mitsui Trust Bank.

“Whether Trump or Biden, the biggest problem is uncertainty. Until we are sure who wins the election, it will be difficult for the market to stabilize.”

The Turkish lira is down 0.2% and could record a fifth consecutive week of decline amid growing geopolitical concerns, including a military conflict in the South Caucasus.

(Sagarika Jaysingani, with contributions by Mfuneko Toyan; translated by Caleb Davis. Editor Anna Kozlova)

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