Donald Trump was minutes into his speech under the blue skies of Butler, Pennsylvania, when a gunshot rang out from a nearby rooftop. The former president quickly bent down behind his podium, and authorities are treating the incident as an assassination attempt.
The shooting occurred just after 6 pm Eastern Time during a campaign rally. Trump suffered damage to his right ear before Secret Service personnel whisked him away to a local hospital for examination and treatment. Officials believe the gunman acted alone, but the motive remains unknown. This marks the first assassination attempt on a presidential candidate since Bobby Kennedy in 1968.
Market Reaction to Trump Shooting
According to Reuters, the markets had been reacting positively to the prospect of a Trump presidency, pushing the dollar higher and positioning for a steeper U.S. Treasury yield curve. These moves extended slightly in Asian trade on Monday morning, July 15, 2024. Ten-year Treasury futures dipped about 13 ticks, and the dollar rose against the euro and yen. U.S. stock futures also inched higher.
Bitcoin, the world’s largest cryptocurrency, surged following the assassination attempt, trading 3.84% higher at $60,249.42 at 10:12 am UAE time on Sunday. Ethereum also saw a rise of 2.09%, trading at $3,198.18. Other cryptocurrencies like Dogecoin, Solana, and Shiba Inu also experienced gains after the incident.
European markets reacted negatively. According to CNBC, European stocks started the week lower as global markets assessed the impact of the assassination attempt. The pan-European Stoxx 600 closed 1% lower, with all sectors and major bourses in the red. Household goods led the losses, down 2%, followed by utilities, which dropped 1.9%.
Shares in Burberry plunged 16% after a disappointing first-quarter performance led to the replacement of its CEO and the axing of its dividend. Swatch Group also fell 9.8% amid a slowdown in China sales.
Looking Forward: Prospects of a Trump Victory and Market Implications
According to the Economic Times, the shooting incident at Trump’s rally increases his odds of winning back the White House. Geoff Dennis, an Independent EM Commentator, noted that while the situation is horrifying, investors and markets tend to seek angles from such events. He suggested that this incident might boost Trump’s chances of winning the election, partly by shifting focus from current President Joe Biden’s candidacy.
There could be a certain amount of sympathy towards Trump, and markets might favor a Trump victory over Biden due to potential policies like lower taxes. This could explain the recovery and rally in U.S. stocks following the event.
The prospect of Trump winning the next election could be appealing to the market due to potential tax cuts. However, this could also lead to inflationary policies, affecting the Fed’s ability to cut rates beyond 2024. Thus, while the news might be bullish for equities in the short to medium term, the long-term view remains uncertain.
So Finance Buddies, the recent assassination attempt on Donald Trump has not only shaken the political landscape but also triggered notable reactions in the financial markets. Do you want to keep getting the latest updates in the financial world like this? Keep an eye on the Invlinic blog! There will be more information about financial planning, investment, trading, and the latest updates in the financial world.
