SA Asks: How Will the U.S. Election Results Impact Financial Stocks?
Stocks and the foreign exchange market both rise, while US bonds plummet! Is this kind of "Trump trade" really right?
Four major issues deserve attention: whether the Republican Party can control the House of Representatives remains uncertain; Trump's immigration and tariff policies have a negative impact on the US economy; compared to Trump's first term, the US stocks have become very expensive; will traders repeat the mistakes of 2016 and bet on the market trends after Trump takes office.
Manjor Indexes Are Higher After Donald Trump Was Elected President of the United States.
Goldman Sachs quick take on Trump's victory: will only slightly reduce taxes, limited impact of tariffs on the economy.
Goldman Sachs believes that if the Republican Party wins a slim majority in the House of Representatives, the expected tax reduction is only expected to account for a fraction of a percentage point of GDP, mainly targeting individual income taxes rather than corporate taxes; in terms of tariffs, automotive tariffs will become a focus and moderately drag on GDP; in terms of regulations, the Trump administration may take a more lenient approach.
"Xin Mei Federal News Agency": If the Republican Party "sweeps" both houses, the Federal Reserve may revise its "basic assumptions" in December.
Timiraos believes that the results of the USA election are not yet likely to change the bank's mmf policy stance, unless the Federal Reserve has fully understood the specific measures taken by Trump in the areas of domestic taxes, tariffs, and immigration policies. If the Republican Party sweeps both houses of Congress, then the Federal Reserve may "begin to modify some basic assumptions" at the December meeting.
US stock market outlook | Trump wins, market shifts to Trump trade! DJT soars 37% pre-market, Tesla surges over 12%.
Delisting crisis worsens! super micro computer Q2 guidance falls short of expectations, annual report release time still uncertain; The next step for the Federal Reserve: Trump's influence is far greater than Powell's.