The shooting incident at former U.S. President Donald Trump's campaign rally on Saturday has increased his chances of winning back the White House, investors said on Sunday, predicting more trades betting on his victory this week.
Trump was shot in the ear at a rally in Pennsylvania, which authorities believe was an assassination attempt. After the incident, Trump, with his face splattered with blood, signaled with a fist pump, and his campaign team stated that he was in good condition following the event.
Before the shooting incident, market expectations of a possible Trump presidency had strengthened the U.S. dollar and prepared for a steeper yield curve for U.S. Treasuries, said Gurong Ren, a portfolio manager with Singapore's Eastspring Investments fixed income team. These trades are likely to strengthen further this week.
This is the first time an American president or major party candidate has been shot since the assassination attempt on Republican President Ronald Reagan in 1981, potentially impacting the tense showdown between Trump and current President Joe Biden scheduled for November 5. Polls show their support rates are neck and neck.
"This election could turn into a landslide victory, potentially reducing uncertainty," said Nick Ferris, Chief Investment Officer at Vantage Point Asset Management. He noted that support ratings surged significantly for Reagan after the failed assassination attempt in 1981.
World leaders and U.S. political figures condemned the shooting, while industry executives, including Tesla CEO Elon Musk, publicly expressed support for Trump.
