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Top news and what to watch in the markets on Friday, October 2, 2020....
Top news and what to watch in the markets on Friday, October 2, 2020....
(Bloomberg) -- At 7:04 a.m. on an autumn Thursday in Tokyo, the stewards of the world’s third-largest equity market realized they had a problem.A data device critical to the Tokyo Stock Exchange’s trading system had malfunctioned, and the automatic backup had failed to kick in. It was less than an hour before the system, called Arrowhead, was due to start processing orders in the $6 trillion equity market. Exchange officials could see no solution.The full-day shutdown that ensued was the longest since the exchange switched to a fully electronic trading system in 1999. It drew criticism from market participants and authorities and shone a spotlight on a lesser-discussed vulnerability in the world’s financial plumbing -- not software or security risks but the danger when one of hundreds of pieces of hardware that make up a trading system decides to give up the ghost.“Exchanges are a crucial part of market infrastructure and...
(Bloomberg) -- Intense volatility, a stock slump and more delays on a stimulus package are some of outcomes investors are considering after President Donald Trump tested positive for Covid-19.Trump’s diagnosis adds another element of uncertainty to a market that’s already been sizing up the potential for a legal battle or political chaos after the Nov. 3 vote. Now, investors are contending with the possibility of Trump’s ill health and how it could affect the U.S. government.“The market move is less about the election and more about the possibility that the U.S. president might become incapacitated,” said David Stubbs, head of markets strategy at J.P. Morgan International Private Bank. “This would inject significant uncertainty into the policy and geo-political outlook. That is a clearly a risk-off event and markets are acting as such.”While markets were broadly lower on Friday, the retreat was calm and orderly. U.S. equity futures slumped 1.6%, with smaller...
(Bloomberg) -- U.S. President Donald Trump said he and First Lady Melania Trump tested positive for Covid-19 shortly after one of his closest aides, Hope Hicks, had fallen ill. U.S. futures slid while the dollar edged higher and Treasuries rose as markets took a risk-off turn.Paris and London are both facing potential new measures to halt the spread of the virus amid rising concerns about infection rates. Germany reported its largest number of new cases since mid-April, while Ukraine and Hungary posted record numbers.Amazon.com Inc. said close to 20,000 of its employees had Covid-19 over almost a six-month period. A $1 billion funding package to help the U.S. Centers for Disease Control and Prevention fight Covid-19 has remained mostly unspent.Key Developments:Global Tracker: Cases pass 34.3 million; deaths exceed 1.02 millionTrump’s age and weight make covid particularly dangerousTrump infection puts large retinue of White House aides at riskHow Russia shortened the Covid...
(Bloomberg) -- European stocks traded modestly lower and U.S. futures fell on Friday after President Donald Trump said he had tested positive for the coronavirus. The dollar edged higher.Trump said both he and First Lady Melania Trump have contracted the virus and will now quarantine themselves, adding to uncertainty in the runup to the U.S. presidential elections next month. While S&P 500 futures fell as much as 2%, they pared their drop throughout the session alongside European stocks as traders assessed how the news would affect both candidates’ chances. The yen and Treasuries, often seen as havens in times of market stress, rose modestly. Crude oil extended losses.In Europe, precious metals miner Centamin plunged as much as 20% after reducing its 2020 production guidance. The pound reversed a loss on news U.K. Prime Minister Boris Johnson will intervene in the Brexit negotiations for the first time since June when he holds...
