What are the economic implications of Donald Trump’s coronavirus diagnosis?

The news injects a considerable dose of uncertainty into an electoral contest whose outcome is likely to have profound consequences for the policies pursued by the world’s largest economy, says Ben Chu

Trump and Biden in an election debate before the president tested positive (AFP/Getty)

The world’s financial markets responded like a scalded kitten to the stunning news that Donald Trump has tested positive for coronavirus with just a month to go before the presidential election.

Share prices fell. The usual assets to which traders and investors turn in times of fear – American government bonds and the Japanese currency – rose in value.

The price of contracts designed to protect investors against market volatility also rose.