The shooting at former US President Trump’s election rally over the weekend has prompted only a limited market reaction. Markets are concerned about policy probabilities, and while individuals may condemn acts of violence against political candidates, they won’t necessarily change their policy projections, notes UBS strategist Paul Donovan.
Polarization in the US is growing, China data is lower than expected
“There is a popular perception that acts of violence against a candidate increase their support, but this is not necessarily true. The analysis is complicated by polarisation in the US and shorter news cycles on social media. This adds uncertainty without necessarily changing policy probabilities.”
“China released economic data overnight that was generally weak. Second-quarter GDP showed less growth than expected, and June retail sales data signaled continued weakness in domestic demand. The international implications of China’s data focus on the likely policy response to support domestic growth. The policy mix may influence China’s demand for raw materials.”
“Federal Reserve Chairman Jerome Powell is due to give an interview today, but in the wake of last week’s congressional testimony, markets are unlikely to be too interested. The Empire State Manufacturing Sentiment Survey from New York may also be overlooked.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
