The US election will certainly impact stock markets and government bonds. Here’s a detailed look at the potential reactions of these financial instruments under different outcomes.
Markets have been preparing for the US presidential election throughout the month, with mounting uncertainties creating significant volatility.
The close race between Trump and Harris has led investors to shift towards safe-haven assets and hedge their risks. However, neither the “Trump Trade” nor the “Harris Trade” offers a guaranteed safe strategy, as it is ultimately the post-election policy implementation that will shape market trends.
An immediate market reaction may be a reversal when a decisive result is announced.
Michael Brown, Senior Research Strategist at Pepperstone London, noted that “the biggest fillip for risk, no matter who ends up winning, would be the certainty of the result”.
He added: “Markets continually…
