Upbeat investors sent ASX 200 futures higher on Friday night despite Wall Street weakening on the news President Trump and his wife had tested positive to COVID-19.
Traders had pushed ASX 200 futures up by 67 points, meaning a solid start for trading on Monday morning in Australia.
But that might not be the case as it was a performance that was at odds with the losses on Wall Street because of the COVID-19 crisis surrounding President Trump.
But that was before news broke after trading ended that the President was being moved to the Walter Reed Military Hospital in nearby Maryland for further evaluation after the initial diagnosis.
The White House described him as having “mild symptoms” but feeling fatigued with congestion and a sore throat.
The White House said he would be in hospital “for the next few days” and that he would work from the Presidential Suite at the hospital. That means he is remaining as President and not handing over to Vice President Pence during his time in hospital.
Unlike the ASX 200 market, US futures remained in the red after hours with the Nasdaq showing a big loss of more than 300 points, or more than 2.7%, compared to the smaller loss in the session of 2.22%.
Gold silver and copper rose, but oil slumped sharply for a big weekly loss.
US stock indexes ended lower Friday but higher over the week.
The Dow fell 134.09 points, or 0.48%, to 27,682.81, the S&P 500 dropped 32.36 points, or 0.96%, to 3,348.44 and the Nasdaq shed 251.49 points, or 2.22%, to close the week on 11,075.02.
Despite Friday’s fall, the S&P and the Nasdaq both gained 1.5% on the week, while the Dow ended the session 1.9% higher than last Friday’s close.
Besides the COVID infections at the White House, investors had to deal with a weaker-than-expected September jobs report which showed 661,000 new positions were filled and the jobless rate dropping to 7.9% – that was the smallest number of new jobs since the pandemic hit in February-March while the unemployment rate was the lowest in six months.
The diagnosis also overshadows negotiations in Congress for another round of fiscal stimulus to combat the economic effects of the pandemic. Those talks will halt with trump unable to hold talks with others while in hospital, all but ruling out an immediate deal.
Oil prices were hit Friday by the news of Trump’s infection (but before the move to hospital), adding to concerns about rising cases of the disease worldwide which may dent demand for the commodity.
The news that Trump and First Lady Melania Trump tested positive for COVID 19 “creates a new round of market uncertainty and reinforcing fears of a second wave of the virus, which will harm the economy and projected energy demand,” said Phil Flynn, senior market analyst at The Price Futures Group, in a Friday note.
Broader implications of the diagnose for energy, not only for the short term but for the long-term, cannot be understated, “ according to Markeywatch.com.
West Texas Intermediate crude for November delivery tumbled $US1.67, or 4.3%, to settle at $US37.05 a barrel in New York.
December Brent crude futures slid 4.1%, or $US1.66, to $US39.27 a barrel in Europe, settling at the lowest front-month contract price since June 12.
WTI futures lost about 8% for the week and Brent futures fell by 7.4% for the week.
On Friday, Comex December gold fell $US8.70, or nearly 0.5%, to settle at $US1,907.60 an ounce on Comex, after gaining 1.1% on Thursday.
Comex Silver for December delivery meanwhile, lost 23 cents, or 0.9%, to settle at $US24.029 an ounce, following a 3.2% rise the day before.
For the week, gold was up 2.2%, while silver marked rose by just on 4.1%,
After falling 5.5% on Thursday, copper rebounded Friday on Comex, rising 3.9% to $US2.9775 a pound for the December contract, tallying a weekly rise of 0.2%.
