New Delhi [India], January 6 (ANI): The upcoming second time period of the US President Donald Trump (Trump 2.0) will likely be helpful for the fairness market and US Dollar whereas it’s destructive for the bonds markets, in accordance with a report by Union Bank of India.
The report compares two timelines of earlier than Trump and from January 2 to November 4 and from November 4 to December 31.
The second interval displays adjustments following the US Presidential election held on November 5-6, beneath the hypothetical state of affairs “World changed under Trump 2.0.”It stated “Trump 2.0”: ve for Equity, Dollar and -ve for Bonds.”The report also said “US exceptionalism theme anticipated to remain key macro and market driver in 2025, Trump 2.0 to maintain Fx markets unstable this yr; twentieth Jan’25 becoming a member of date in focus”.
In the commodities class, gold skilled positive factors within the ancient times however corrected marginally post-election. Oil and copper confirmed modest will increase initially however surged after November 4. Aluminium gave good returns within the first interval of this yr and corrected marginally after the elections.
While cotton demonstrated a destructive pattern solely this yr. In equities, international markets mirrored various developments. The US Dow, German DAX, and UK FTSE registered notable positive factors this yr and surged additional post-elections. Japan’s Nikkei noticed a powerful restoration post-elections, which was in destructive earlier, whereas India’s Sensex skilled notable positive factors earlier than the US elections, the index corrected after TRUMP 2.0.
The report additionally famous that within the bonds market, US 10-year yields noticed modest adjustments, whereas German 10-year bonds declined post-elections and UK 10-year bonds registered marginal positive factors.
Japan’s 10-year bonds additionally recorded an uptick, whereas India’s 10-year bonds declined this yr.
In currencies, the US Dollar Index (DXY) strengthened considerably after November 4, reflecting a shift in sentiment. The euro and pound declined sharply post-election. The yen depreciated after November 4, whereas the Indian rupee displayed restricted fluctuations in destructive.
Overall, the election outcomes seem to have pushed substantial market shifts, notably in commodities, equities, and currencies. (ANI)