Daily Summary: Trump's recovery stokes market euphoria

• Trump's condition improves

• Stock markets rally

• Natural gas and oil surge on looming hurricane threat

• Mixed performance of EM currencies

Markets were shocked on Friday with the news that Donald Trump has tested positive for Covid-19. US President was taken to hospital over the weekend but just as European markets were getting ready for the opening of a new week, news started circulating hinting he may be discharged as soon as today. It was confirmed later on that decision on the matter will be taken later today. In case doctors rule that Trump should stay in hospital, it is likely that he will be discharged tomorrow.

Upbeat news on the condition of the US President spurred euphoria on the global markets with equities rallying all over the world. Majority of the European blue chip indices finished the day around 1% higher. Dow Jones, S&P 500 and Russell 2000 have already erased declines from Friday while Nasdaq lags behind. US equities received an additional boost from better than expected ISM non-manufacturing release. Regeneron was one of the stocks on watch today after Covid-19 treatment developed by the company was used in treatment of the US President.

Gains can also be spotted on the commodities market. Precious metals trade higher amid US dollar weakness - platinum climbed above $900 while silver tests $24.50 area. Massive rally can be spotted on the energy market as a hurricane is forming near the US Gulf coast. Potential supply issues are pushing the price of natural gas around 10% higher while both Brent and WTI gain around 6%. Industrial metals trade mixed - nickel and zinc gain while copper and lead pull back. 

Risk-on moods can be spotted on the FX market with Japanese yen and US dollar being among G10 top laggards. GBP and EUR advance the most. EM currencies are trading mixed with TRY, CLP and ZAR declining against the US dollar while BRL, MXN and PLN advance.

DE30 tests resistance at 12,800 pts amid risk-on rally. Source: xStation5