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What's at stake for global markets in a Trump presidency

VCCircle · 15d

A Trump presidency is expected to have various impacts on global markets. The U.S. dollar is likely to strengthen due to higher inflation and growth expectations. Tariffs and a skeptical stance towards multilateral institutions could depress growth elsewhere in the world, boosting the dollar's appeal. Stock sectors such as banks, technology, defense, and fossil fuels may benefit from Trump's promises of less regulation and lower taxes. However, protectionist policies and trade tensions may negatively affect multinational companies. Trump's spending plans could increase U.S. government debt, leading to higher borrowing costs. In commodities, U.S. oil and gas drilling is likely to expand, keeping prices relatively low, but oil sanctions on Iran could trim global crude supply. Emerging markets may be impacted by tariffs and tighter monetary policies in response to a Treasuries sell-off and dollar rise. Trump's deregulatory agenda could boost shares in oil and gas drilling and coal mining sectors but hinder sustainable investments.