Former President Donald Trump survived an assassination attempt at a rally in Pennsylvania, sending shockwaves through the financial markets. Investors are expected to flock to traditional safe-haven assets such as the US dollar, Japanese yen, Swiss franc, and gold in the wake of the attack.
Bitcoin, which has been on a bullish trend, rose above $60,000 following the news of the assassination attempt. Traders will also closely monitor futures contracts on the S&P 500 index and US Treasuries market for any signs of market volatility.
Market analysts predict that Trump’s survival may increase his chances of winning the White House in November’s election. His policies, including looser fiscal policy and higher tariffs, are seen as favorable for the dollar and negative for Treasuries.
Assets linked to the so-called “Trump trade,” such as shares of energy firms, private prisons, credit-card companies, and health insurers, are expected to benefit from the news. However, tech and renewable-energy stocks may face pressure.
Bitcoin, known for its appeal as a hedge against political turmoil, could see further gains due to Trump’s pro-crypto stance. The news of the assassination attempt marks a turning point in American political norms, leading investors to seek non-traditional safe havens like Bitcoin and gold.
While the markets are expected to react with increased volatility on Monday, analysts caution that the situation could lead to a steepening of the yield curve and higher bond yields. Bond investors should pay close attention to Trump’s election chances and the potential impact on the fiscal outlook.
Overall, the financial markets are bracing for a period of uncertainty and heightened risk as the election approaches. The shooting incident in Pennsylvania has added a new layer of complexity to an already volatile political landscape.
