(Fixes typographical error in paragraph 13)
* Stocks fall, oil falls after Trump virus
* America disappointed, adding to the feeling of recession
* Dollar gains, oil currencies fall on crude oil
* Gold is above $ 1,900 per ounce, but head is low
* Graphic: 2020 property performance tmsnrt.rs/2yaDPgn
* Graphic: World FX rates in 2020 tmsnrt.rs/2egbfVh
* Reuters Live Market Blog:
NEW YORK / LONDON, October 2 (Reuters) – Investors piled into safe gold and the Japanese yen on Friday after global equity markets fell and US President Donald Trump and his wife tested positive for coronovirus, which Just 32 days before the US increases market uncertainty. Election.
Trump’s blatant announcement sparked an already risky mood among investors worried about an ineffective coronavirus relief package aimed at steaming the US economy, slowing job growth in September payroll data.
Gold turned towards its best week in nearly two months, even as it gained an early lead, while the Japanese yen held its fastest lead in more than a month. But the benchmark 10-year US Treasury note had a slight increase, entangled in a narrow trading range that had been held for three weeks.
How voters feel about the epidemic on polling day can determine the outcome of the election and is highly unusual, said Michael Aron, chief investment strategist for the US SPDR business at State Street Global Advisors in Boston.
“Today’s news shows little weakness in the context of Trump’s election campaign,” he said. “The range of results has expanded and the likelihood of some of the more extreme results has increased and markets certainly do not.”
Administration officials said Trump is experiencing mild symptoms, but will continue to work after testing positive.
Stocks fell mostly on Wall Street but the regional index in Europe ended slightly higher after the initial sell-off on Trump’s news. The FTSEurofirst 300 index rose 0.22% to 1,405.35 and the STOXX Europe 600 increased 0.25% to 362.69.
MSCI’s benchmark for global equity markets fell 0.5% to 565.15, while its emerging markets index fell 0.26%.
On Wall Street, the Dow Jones Industrial Average fell 0.08%, while the S&P 500 fell 0.61% and the Nasdaq Composite fell 1.99%.
Francois Savory, chief investment officer of Prime Partners, manager of Swiss House, said how long the risk-avierson will last depends on the extent of the transition within the White House.
“It will weigh in on the market today and early next week but will not inspire long-lasting reform due to Trump’s transition,” he said.
As a shock to the stock market, on November 22, 1963, President John F. The Kennedy assassination dipped the S&P 500 by about 3% and the New York Stock Exchange closed two hours before its regular closing time. But the loss was limited to one day and the market declined within two days.
The Labor Department’s closely watched employment report on Friday was the last before the November 3 presidential election.
Employment gains were the smallest in September as jobs began to recover in May and recouping 22.2 million jobs lost in March and April left the US labor market, indicating slower growth in the fourth quarter.
US nonfarm payrolls rose from 661,000 jobs last month to fall short of consensus expectations of 850,000, prompting mostly negative feedback by economists.
But both Aron and Steven Ricciuto, US chief economists at Mizuho Securities USA in New York, said the loss of government jobs, mostly seasonal in education, drew the numbers down, while private sector profits were above overall expectations.
“The net result is seasonal factors have pulled down the state and local share, very, dramatically, especially in the field of education,” Ricuto said. “Private sector components, however, continue to improve at a healthy pace.”
The government lost more than 200,000 jobs, Aron said.
“The job the government is missing is real, don’t get me wrong but overall the private sector hangs very well,” he said.
With the election now even more uncertain, online gambling site Betfair on Friday suspended betting on the November 3 result.
The dollar and yen gained momentum from the news of the White House. The dollar index climbed 0.103% to euro 1.2814, down 0.28%.
The Japanese yen strengthened 0.15% vs. the greenback at 105.37 per dollar.
The Australian dollar, which serves as a liquid proxy for risk assets, was down 0.23%.
Germany’s benchmark 10-year bond was around -0.536% at 0.7 basis point.
Crude prices fell 4% on Trump’s positive test for COVID-19, which drives up risky assets, and risks a weak recovery of the oil market due to increased production of global crude oil.
Brent crude futures closed at $ 1.66 to $ 39.27 per barrel. US crude futures fell $ 1.67 to close at $ 37.05 a barrel.
Gold gained an early edge to reduce stock losses.
“If more members of the senior leadership of the US government are positively diagnosed, gold can be earmarked for an extended rally,” said Jeffrey Haley, a senior market analyst at OANDA.
Gold spot fell 0.17% to $ 1,901.77 an ounce. US gold futures closed down 0.5% at $ 1,907.60.
Reporting by Herbert Lash in New York and Elizabeth Hawcroft; Additional reporting by Rachel Armstrong in London; Editing by Dan Grebler and Nick Ziminski