Markets react to possible Trump victory

The assassination attempt on former President Donald Trump has raised his odds of winning back the White House. Opinion polls have shown a tight race, but history suggests such events can significantly shift public sentiment. Following the 1981 assassination attempt, President Ronald Reagan saw a 22-point surge in polls. Analysts now say the incident could reduce uncertainty in the election, potentially leading to a landslide victory for Trump.
The financial markets had already been reacting to the possibility of a Trump presidency, since President Joe Biden's poor performance in last month's debate. The dollar was climbing, and there were moves toward a steeper US Treasury yield curve. These gathered even more momentum after the shooting. The dollar strengthened against most peers on Monday, with the Mexican peso leading the slide.
Cryptocurrencies also surged, potentially reflecting Trump's crypto-friendly stance. Bitcoin rose almost 10 percent to hit a two week high of 62,700 dollars, while ether was also up around 7 percent at 3,300 dollars. Trump has previously presented himself as a champion for cryptocurrency, and indicated he would like to see more bitcoin mining by US firms.
The economy remains one of the key issues for voters. According to a Reuters poll, many see Trump as the better candidate for the economy,, even as inflation slowed and unemployment remained historically low under Biden's presidency. Market analysts expect a Trump administration would bring a more hawkish trade policy, less regulation, and looser climate change regulations.
However, there are concerns about rising budget deficits under a potential Trump presidency. He's previously signaled an extension of corporate and personal tax cuts expiring next year. According to a Congressional Budget Office report, fully extending the Tax Cuts and Jobs Act or TC-JA, could add an estimated 4-point-6 trillion dollars to the deficit over the next decade.
Subscribe:
trt.world/subsc...
Livestream: trt.world/ytlive
Facebook: trt.world/facebook
Twitter: trt.world/twitter
Instagram: trt.world/insta...
Visit our website: trt.world