The US election could significantly impact financial markets, influencing currencies, stocks, and commodities. Here are some potential market reactions to different election outcomes.
ADVERTISEMENTWith less than a week to go until the US presidential election, financial markets are anticipating a potential Trump victory.
The term “Trump Trade” has gained popularity among investors as his proposed policies – including those on tariffs, immigration, aid to Ukraine, and cryptocurrency regulation – have influenced trends across all asset classes. This trend has seen the US dollar, gold, silver, and Bitcoin strengthen, while stock markets feel the pressure.
However, markets may be responding more to uncertainty and risk hedging than to any concrete Trump policy implementation.
Regardless of who wins, the policies of the next president will be instrumental in shaping market trends. Even if Harris wins, a reversal in market direction may be limited, given the prevailing economic forces driving sentiment.
Euro could extend weakness regardless of election outcome
The global market outlook has been heavily influenced by the upcoming US presidential election on 5 November, with betting markets leaning towards a Trump victory.
Economists believe Trump’s proposed 60% tariff on Chinese goods, along with a 10% tariff on imports from other countries, could drive up US prices, compelling the Federal Reserve to raise interest rates, thereby adding pressure on equities and…
