Stocks Higher After Trump Leaves Hospital

Stock markets gained ground Tuesday while investors mulled the level of US electoral uncertainty after President Donald Trump returned to the White House following treatment for Covid-19.

As Trump was discharged from hospital, political concerns persisted ahead of the presidential election on November 3.

The dollar rose against the pound but declined against the yen, while oil prices shot higher amid strikes on Norwegian offshore platforms and a hurricane heading towards US installations.

In afternoon exchanges, the FTSE 100 index was 0.2 percent higher in London, while the Dow Jones index had gained the same in early New York trades.

Global equities had rebounded Monday on reports of Trump’s improving health, and as US lawmakers appeared to edge towards agreeing on a new stimulus package.

The election was still a big question mark, however.

“This is still going to be a controversial, drawn-out election with the potential added uncertainty of a challenge to the result,” OANDA analyst Craig Erlam told AFP.

Investors were also unclear over the chances of a new US stimulus package that would help counteract fallout from the pandemic in the world’s biggest economy, dealers said.

Analysts said Trump’s positive test for Covid-19 could be the jolt US lawmakers needed to finally agree a deal.

Stimulus talks have revived with a series of mostly phone meetings between Treasury Secretary Steven Mnuchin and Democrat House leader Nancy Pelosi.

“As far as traders are concerned, talking is preferable to being in a stand-off and not engaging with each other,” noted David Madden, analyst at CMC Markets UK.

Traders are increasingly pricing in a Joe Biden win in next month’s election as polls give him big leads over Donald Trump Photo: AFP / ROBERTO SCHMIDT

London – FTSE 100: UP 0.2 percent at 5,956.13 points

Frankfurt – DAX 30: UP 0.7 percent at 12,919.12

Paris – CAC 40: UP 0.7 percent at 4,904.60

EURO STOXX 50: UP 0.5 percent at 3,237.43

New York – Dow Jones: UP 0.2 percent at 28,199.45

Tokyo – Nikkei 225: UP 0.5 percent at 23,433.73 (close)

Hong Kong – Hang Seng: UP 0.9 percent at 23,980.65 (close)

Shanghai – Composite: Closed for a holiday

Euro/dollar: UP at $1.1784 from $1.1783 at 2100 GMT

Dollar/yen: DOWN at 105.66 yen from 105.75 yen

Pound/dollar: DOWN at $1.2963 from $1.2979

Euro/pound: UP at 90.92 pence from 90.79 pence

West Texas Intermediate: UP 3.6 percent at $40.64 per barrel

Brent North Sea crude: UP 3.3 percent at $42.67