Financial Markets Brace for Impact as Trump Eyes Return

Donald Trump's potential return to the White House is perceived favorably by the U.S. dollar and stock market. However, bonds, emerging markets, clean energy, and sustainable investing might face challenges. His policies could bolster inflation and growth, while imposing tariffs and cutting corporate taxes may affect multinational finances and global trade dynamics.

Donald Trump is positioned for a potential return to the Oval Office, a scenario that could have profound implications across financial markets. Analysts suggest the U.S. dollar and stock market may thrive, while bonds, emerging markets, and sustainable investments could struggle under his policies.

The expectation of higher inflation and growth under Trump's presidency is predicted to strengthen the U.S. dollar, as the Federal Reserve might maintain elevated interest rates to prevent economic overheating. Furthermore, anticipated tariffs and trade measures could drive global currencies and markets into volatility.

Conversely, Trump's proposed policy shifts, including significant corporate tax cuts and reduced regulation, could buoy stock sectors such as banking, technology, defense, and fossil fuels. However, these moves might also exacerbate fiscal deficits and trade tensions, influencing global interest rates and risking broader economic instability.

(With inputs from agencies.)