The upcoming U.S. election is expected to have a significant impact on global financial markets, potentially causing major shifts across various asset classes.
The policies of the next president, whether it be Donald Trump or Kamala Harris, will directly influence the economy and could lead to substantial movements in stock, bond, currency, and commodity markets.
Fiscal policies and regulatory changes will be a key focus, with Trump likely to continue supporting sectors such as oil, defense, and banking, while Harris advocates for increased government spending and potential tax hikes for corporations and higher earners.
The president's influence on monetary policy, particularly through appointments to the Federal Reserve's board, will also be important.
A Trump victory could lead to a continuation of low interest rates, while Harris is likely to advocate for tighter inflation control.
Infrastructure spending and strategic sector support will be influenced by the election outcome.
Trump favors traditional sectors like fossil fuels and defense, while Harris prioritizes renewable energy and electric vehicles.
Foreign policy and international trade will also play a role.
Trump's protectionist policies could create volatility in global markets, while Harris is expected to pursue a more cooperative and open international trade policy.
The election outcome will also have implications for currency and commodity markets.
A Trump victory could strengthen the U.S. dollar and drive up oil prices, while a Harris administration could create a stable environment for currency markets and increase demand for commodities related to clean energy.
Overall, the U.S. election will shape the economic landscape for years to come, and investors will need to adjust their portfolios accordingly.