Donald Trump's disease shaking global markets
21:57
Financial markets reacted quite vehemently to the news of the US president's infection.
On Friday afternoon, the negative sentiment in the markets slightly weakened – after the opening of quotations on Wall Street, the S & P500 fell by less than 1 percent, the German DAX was also losing about 1 percent. The Polish stock exchange was also not indifferent to the global risk-off.
Although the WIG20 ended the day slightly positive (mainly due to CD Projekt's recovery on Thursday's declines), the vast majority of listed companies lost their value on the WSE main market.
"The coming days can be quite interesting as there is a risk of a tangle of unexpected events. A few days ago, we were concerned that Trump might sue the election if he felt that the postal vote had led to major abuses. Now we cannot entirely dismiss the scenario that they would be postponed due to a significant change in conditions,” Marek Rogalski, an analyst in DM BOŚ, said.
Another presidential candidate is also a problem for asset valuations. Investors may look unfavorably at Biden's growing chances in the final straight of the presidential race.
"If there was a real threat of an increase in taxes, some investors would have to include this fact in their valuations. The risk of increasing taxes on capital gains is also considered. So if someone has a big profit on paper, they may want to make it this year, for example, rather than keep their positions open, exposing themselves to the risk of paying a higher tax in the near future. After more than a decade of boom in the US, raising the tax on capital gains may turn out to be a tasty morsel in terms of adding a solid portion of revenues to the budget,” Tomasz Gessner from Efix DM added.
In turn, Przemysław Kwiecień from XTB indicates that the very course of the disease in Donald Trump may have a very significant impact on the markets, the more so as the US president approached the pandemic quite lightly from the beginning.
