Donald Trump win can spur US stocks, dent Asia assets, says JPMorgan

A surprise election victory by President Donald Trump next week could benefit US equities and the dollar while hampering Asian assets, according to JPMorgan Chase & Co.
 

That’s based on market moves after Trump unexpectedly won the vote in 2016, according to strategists including Nikolaos Panigirtzoglou. Democrat nominee Joe Biden is currently leading in polls but Wall Street firms have recently cautioned against assuming he will beat Trump.
 

The JPMorgan strategists said it’s reasonable to expect an echo of the fallout from four years ago if Trump wins, such as a favorable market reaction for American equities compared with non-US stocks, a decline in Asian currencies and the underperformance of Asian shares relative to global peers. They also see the potential for a rise in a trade-weighted gauge of the dollar. “Asian assets are likely to be sensitive to a continued Trump Presidency as it would likely mean further US/China conflict on trade, technology and investments,” the strategists wrote.
 

While polls and prediction markets give Biden the edge, analysts also remember how Trump shocked many pundits and markets by defeating then-favourite Hillary Clinton in 2016.
 

President weighs issuing executive order on fracking
 

US President Donald Trump is considering issuing an executive order to require an economic analysis of hydraulic fracturing, or fracking, sources said, as the president seeks to use what he portrays as Biden’s mixed messages on energy to woo voters in the swing states of Pennsylvania and Ohio.   Bloomberg