US Presidential Election: Chen Zhenglun ​on Trump’s Victory and Market Impact

2024-11-06⁢ HKT 23:55

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  2024-11-06%20HKT%2023:57″ ​title=”Chen Zhenglun said that Trump’s ⁢policies may push up medium and long-term inflation, and the⁢ pace of interest rate cuts may slow down in the future. (Hong ​Kong and⁢ Taiwan pictures)”>
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  Chen Zhengluo said that ​Trump’s policies may push up medium and⁢ long-term inflation, and the pace of interest rate ‌cuts ​may slow down ⁢in the future.⁤ (Hong Kong‍ and Taiwan pictures)

Chen Zhengluo, Senior Investment Strategist, Standard Chartered Wealth Solutions

Trump‌ announced that ⁤he had won the U.S. presidential election. The three major U.S. stock indexes all hit new highs in the early hours. The⁤ U.S. dollar and Bitcoin also performed well, ⁣while the RMB, oil prices, and gold prices came under pressure.

Chen Zhenglun, senior ⁤investment strategist at Standard Chartered Wealth Solutions, ⁢believes that the⁤ U.S. financial market welcomes Trump’s victory in the election. The Republican Party will regain control of the Senate and also have a chance to win control of the House of Representatives. He‌ estimates that Trump may ⁣further cut⁣ corporate taxes, which⁣ will be beneficial to corporate profits,‍ thus benefiting the performance of risk assets​ such as U.S. stocks.

Chen Zhengluo reminded that ​we should pay attention to the results of the Federal ⁢Reserve’s interest rate meeting announced in the early morning of this Friday, ‌Hong ⁢Kong time, because Trump’s policies may push up medium and long-term inflation, and the pace of future interest rate cuts may slow down, which will be detrimental to the performance⁢ of U.S. stocks. He said the market’s ‌forecast for‌ an interest rate cut by the end‍ of next year has narrowed to 100 basis points from the 120 basis points estimated on⁤ Tuesday.

He also mentioned that if the United States imposes additional tariffs, it will affect the performance of ‌Chinese assets. If more policies are announced at the National People’s Congress Standing Committee ​meeting ‍that ends on Friday,​ it should be able to offset the impact of the US election on Hong Kong stocks.