As the global markets reel under the specter of a potential second term for Trump, investors worldwide are bracing themselves for an uncertain future. Here’s a breakdown of the impact the 2024 US election may have on Washington and the world:
- European stocks took a nosedive, with the Stoxx Europe 600 index plummeting by 2%, marking its worst performance in a single day since early August.
- Currencies such as the dollar, sterling, yen, and euro suffered losses against the greenback, signaling a tumultuous period ahead.
- Reports suggesting that senator Marco Rubio, a vocal critic of China and Iran, may take over as secretary of state under Trump’s administration sent shockwaves through the trading world.
- Amidst fears of a more hawkish stance towards China, traders are factoring in a scenario where Republicans control both houses of Congress, potentially paving the way for tax cuts and aggressive trade tariffs.
- Commodities like copper and palladium witnessed a decline as concerns over US tariffs loomed large, with traders scrambling to weather the storm.
- US Treasury yields rose, indicating a shift in sentiment towards a more stable economic outlook, bolstered by expectations of lower rate cuts and potential inflation under the new administration.
While market uncertainties abound, the upcoming US inflation data release looms large on the horizon, promising further volatility. As investors brace themselves for what lies ahead, the global economic landscape stands at a crossroads, waiting for the next twist in the plot.
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