European stocks are expected to open lower Wednesday as markets around the world react to President Trump’s decision to halt stimulus talks until after the November election.

London’s FTSE is expected to open 14 points lower at 5,930, Germany’s DAX down 62 points at 12,851, France’s CAC 40 down 24 points at 4,871 and Italy’s FTSE MIB 76 points lower at 19,270, according to IG.

Markets in the U.S. and Asia-Pacific have been reacting Trump’s tweet on Tuesday that the White House is halting talks with Democrats about a second coronavirus stimulus deal.

The Dow Jones Industrial Average closed down 375 points, having rallied in the session on hopes that there would be a second relief package to prop up markets as the coronavirus outbreak continues. 

“I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business,” Trump said in a tweet on Tuesday. 

The S&P 500 lost 1.4% and the Nasdaq Composite fell 1.57% on Tuesday, while oil prices also declined. U.S. stock futures were little changed in overnight trading.

Trump’s latest move came as U.S. Federal Reserve Chairman Jerome Powell on Tuesday called for continued aggressive fiscal and monetary stimulus for an economic recovery he said still “has a long way to go.”  Also on Tuesday, the International Monetary Fund’s Managing Director Kristalina Georgieva said the path ahead will be a “difficult climb.”

Retailer Tesco releases interim results Wednesday and France releases import and export figures and Spain releases its latest industrial output data.

-CNBC.com staff contributed to this market report.

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Markets are reacting relatively calmly to the news that President Donald Trump and First Lady Melania Trump have tested positive for Covid-19. The S&P 500 is off 0.8%, Dow Jones Industrial Average is down a mere 0.3%, although the tech-heavy Nasdaq is down more than 2% on the news.

The question now is how will markets perform over the next several days and weeks. The answer may lie in how bad a case of coronavirus President Trump ends up with.

Could Trump’s Covid-19 Diagnosis Interrupt the Recovery?

The news upends an already chaotic few months. In some ways, the economy has strengthened remarkably since the onslaught of the coronavirus pandemic, with home sales and consumer confidence growing more robust, and unemployment dropping from almost 15% in the spring to 7.9% in September as employers added 661,000 jobs.

Nevertheless, a recent uptick in cases throughout Europe and in parts of the United States caused stock market participants to get antsy. The S&P 500 dropped about 7% from its high on September 2 to September 29, per CFRA chief investment strategist Sam Stovall. 

“Despite the solid economic backdrop, equity investors increasingly sound like Oliver Twist, stating the need for more,” Stovall noted.

This isn’t the more they had in mind.

Historical Market Reactions to Presidential Health

When the health of the most powerful person in the world is compromised, investors tend to sell—at least in the heat of the moment.

For instance, the DJIA went from up 6 points before President Reagan was shot in March 1981 to down almost 3 points after news of his injury became known. Stocks also briefly dropped after President John F. Kennedy was assassinated in 1961. Markets were already in chaos when President William McKinley was assassinated in 1901, although the impact of his

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Credit…Ruth Fremson/The New York Times

Business leaders reacted to the tumultuous presidential debate on Tuesday night between President Trump and former Vice President Joseph R. Biden Jr., as concerns mounted that a chaotic race to the November elections would add further turmoil to the markets.

Companies big and small have been on a roller coaster as coronavirus cases in the United States have continued to rise, and policymakers in Washington have inspired little confidence that they are ready to pass additional pandemic relief. After reaching a record high this month, the S&P 500 — an indicator of investor and business sentiment — appears poised to close September with a loss, its first monthly fall since March.

The first presidential debate has only added to the risks facing business. Many business leaders were concerned about disruptions to a smooth transition of power if Mr. Trump lost, while others expressed dismay at Mr. Trump’s refusal to condemn white supremacy and his suggestion that the Proud Boys, a far-right group, should be prepared to “stand back and stand by.”

“People just want stability, some degree of normalcy,” said Aaron Levie, chief executive of the tech company Box. “We want to understand what the geopolitical landscape looks like, what trade looks like, what immigration looks like. There’s not a clear underlying philosophy that drives this administration, other than nationalism. You just can’t predict the next move.”

Mr. Levie said he was concerned that another term for Mr. Trump would lead to fewer foreign nationals coming to the United States to pursue education and professional opportunities, noting that many of the country’s most successful companies have been started by immigrants.

“We just don’t