Global investors are expecting a Trump presidency
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In the eyes of global investors on Monday, the attempted assassination of former President Trump has only strengthened the prospects of his return for a second term.
Why it matters: Money managers and traders had already been putting the "Trump trade" in motion — bets on looser U.S. regulation, tax cuts and increased spending — following President Biden's poor debate performance.
- "What happened over the weekend probably confirmed what the markets have been pricing for some time," Eleanor Taylor Jolidon, co-head of Swiss and global equity at UBP - Union Bancaire Privée, told Bloomberg television shortly after European markets opened Monday.
Driving the news: Investors in the Asia-Pacific region focused more on data out of China that showed the country's economy grew much slower than expected in Q2.
- European stocks opened lower as concerns about China flowed over — particularly as Burberry and Swatch reported big drops in demand for luxury goods in the country.
Meanwhile, U.S. stocks were positioned to open higher, with shares of Trump Media & Technology Group specifically jumping more than 50% in pre-market hours. At one point, shares were up nearly 70%.
- Long-term treasury yields rose, led by the 20-year note — a reaction associated with expectations that Trump would preserve or expand tax cuts and focus on high-growth policies.
- Bitcoin prices also jumped to a two-week high of nearly $63,000 in anticipation that a Trump victory could create a friendlier regulatory environment for cryptocurrencies.
What we're watching: Health care stocks, oil-industry and bank stocks are among those that investors expect to perform well during another Trump administration.
Reality check: There are still four months until the election. Investors' bets today are no guarantee of what's to come.
Editor's note: This is a developing story and will be updated.
