Impact of Trump's Assassination Attempt on Global Markets
The recent assassination attempt on former US President Donald Trump has sent ripples across global markets, influencing stock prices and investor sentiment. The dramatic image of Trump with a bloodied ear, hastily evacuated by his bodyguards from a campaign rally in Pennsylvania, has captivated the world. In China, this event has led to a significant boost for a local company, Wisesoft, whose name in Mandarin sounds like 'Trump wins big.' As a result, Wisesoft's shares surged by 10% on the Shenzhen Stock Exchange.
Stock market speculation linked to current events is not uncommon in China. Wisesoft had previously seen its shares jump following President Joe Biden's poor performance during a debate against Trump and after Trump's presidential victory in 2016. This trend highlights the influence of political events on market dynamics.
Broader Economic Implications
The assassination attempt has broader implications for the global economy. Markets have been betting on Trump's victory long before the incident, expecting a landslide win against Joe Biden. According to Nick Ferres, chief investment manager at Vantage Point Asset Management, a Trump victory would likely reduce uncertainty, benefiting the markets.
Analysts from Goldman Sachs have noted that CEO confidence, consumer sentiment, and small business optimism tend to rise more in response to Republican victories. This could lead to increased spending and investment, improving the earnings outlook for some companies. However, not all sectors would benefit equally. Companies with significant international revenue might face backlash due to Trump's tough trade policies and higher tariffs.
The crypto markets also reacted swiftly, with Bitcoin trading above the $60,000 mark. This surge is partly due to Trump's promise of less stringent control over the crypto industry compared to Biden. Investors are also seeking safe havens like gold and the Swiss franc amidst the uncertainty.
In contrast, the German market showed little reaction to the assassination attempt, with the DAX barely changing at 18,730 points on Monday afternoon.
- The assassination attempt on Donald Trump has not only affected stock markets but also sparked a peculiar trend in China. T-shirts featuring the viral image of Trump with a bloodied ear appeared on the online sales platform Taobao. Although most of these t-shirts have been removed, some remain available on certain foreign platforms.
- Chinese President Xi Jinping expressed his compassion and sympathy to Trump following the assassination attempt. This gesture comes amidst ongoing tensions between the US and China, with Trump promising to intensify the trade war if he returns to the White House.
