After reported rumours of President Trump’s positive COVID test were confirmed, Myles Zyblock – Chief Investment Strategist at Dynamic Funds – offered his commentary on the situation:
President Trump and his wife have tested positive for SARS-CoV-2 according to an official statement from, Physician to the President, Sean Conley. Both Melania and the President are reporting that they are in quarantine and are feeling well, but have postponed their upcoming engagements.
The uncertainty that this creates, especially since it is so close to the election, is being expressed across the financial markets. At the time of writing, S&P 500 futures were down by about 1.8%, 10-year Treasury yields were 2 basis points lower, and the U.S. dollar was a little stronger. The financial markets are starting the day in a risk-off mood.
There are well-established plans in place if the President was not able to fulfill his duties. The reins would then be handed over to Vice President, Mike Pence. We have also seen reports that the Vice President has been tested and his results for the virus came in negative. So, if required, he’d be able to step in unhindered.
The good news is that this has happened at a time when the economy shows signs of continuing to dig its way out of the deep hole. The payroll numbers out this morning showed that the U.S. economy created another 661,000 jobs in the month of September, with the unemployment rate declining to 7.9% from 8.2% in the previous month. The unemployment rate has been cut nearly in half since April.
I will end off with a few facts, not a prediction. Past leaders have seen their poll numbers improve in the aftermath of a health scare. Ronald Reagan’s approval jumped by 11 points soon after the failed assassination attempt in his first term. Meanwhile, Boris Johnson saw a sharp 17-point rise in his popularity following his battle with the virus this past April.
The polls might not turn out so well for President Trump, particularly given the criticism around his handling of this pandemic, but it is interesting food for thought.
(End of Myles Zyblock Commentary)
Weekly Update – By The Numbers
| North America | Friday Close | Weekly Change | Weekly % Change | YTD % Change |
| Canada – S&P TSX Composite | 16,202 | 137 | 0.85% | -5.05% |
| USA – Dow Jones Industrial Average | 27,722 | 548 | 2.02% | -2.86% |
| USA – S&P 500 | 3,353 | 55 | 1.67% | 3.78% |
| USA – NASDAQ | 11,075 | 161 | 1.48% | 23.43% |
| Gold Futures (USD) | $1,908.30 | $46.72 | 2.51% | 25.55% |
| Crude Oil Futures (USD) | $37.06 | -$3.19 | -7.93% | -39.45% |
| CAD/USD Exchange Rate | € 0.7515 | € 0.0045 | 0.60% | -2.40% |
| Europe / Asia | Friday Close | Weekly Change | Weekly % Change | YTD % Change |
| MSCI World Index | 2,362 | 35 | 1.50% | 0.17% |
| Switzerland – Euro Stoxx 50 | 3,191 | 54 | 1.72% | -14.86% |
| England – FTSE 100 | 5,902 | 59 | 1.01% | -21.89% |
| France – CAC 40 | 4,825 | 95 | 2.01% | -19.29% |
| Germany – DAX Performance Index | 12,689 | 220 | 1.76% | -4.23% |
| Japan – Nikkei 225 | 23,030 | -175 | -0.75% | -2.65% |
| China – Shanghai Composite Index | 3,218 | -1 | -0.03% | 5.51% |
| CAD/EURO Exchange Rate | € 0.6415 | -€ 0.0006 | -0.10% | -6.54% |
| Fixed Income | Friday Close | Weekly Change | Weekly % Change | YTD % Change |
| 10-Year Bond Yield (in %) | 0.6960 | 0.0370 | 5.61% | -63.73% |
Sources: Yahoo! Finance, Dynamic Funds
This information is provided for general information purposes only. It does not constitute professional advice. Please contact a professional about your specific needs before taking any action.