Election results can significantly influence investor confidence, impacting stock prices, particularly in sectors affected by policy changes like healthcare and energy. To learn which sectors are likely to be most affected by the election, check out XTB’s US Election report. While all political elections are significant, the US election is particularly noteworthy, drawing immense attention and investment. Candidates in the US often spend billions on their campaigns, and the media coverage is unparalleled- let’s just say no one does it quite like they do.
Key Markets to Watch as the Election Looms
According to OpenSecrets, Democratic candidate Kamala Harris has raised over $1.27 billion. Trump’s official campaign has garnered a total of around $940 million. Despite the disparity, it’s important to remember that fundraising totals don’t always determine the outcome of a presidential election.
Key markets to look out for ahead of the US election include US500, Oil, Gold, and EURUSD.
Oil is one of the most politically sensitive assets globally, meaning that the policies of both candidates could significantly affect prices. If Kamala Harris wins, we might see prices rise in the long term, largely due to her hesitance to increase production and the limited influence on OPEC+, as evidenced during Biden’s presidency. Conversely, a victory for Donald Trump could negatively impact oil prices over time.
Trump advocates for energy independence, which could lead to a boost in oil and gas production. Additionally, he wielded more influence over OPEC’s decisions during his term. If he follows through on his promises to resolve geopolitical conflicts worldwide, this could also exert downward pressure on oil prices.
On the other hand, a weak dollar could positively influence gold prices if Kamala Harris wins. Conversely, a victory for Donald Trump might bolster the dollar. However, Trump’s policies could also raise inflation expectations, which might have a favorable effect on gold as well.
How to Keep Yourself Informed
As the campaigns enter the final stretch of an intensely competitive presidential race, numerous polls show that the two candidates are closely matched, especially in crucial battleground states that may ultimately decide the election.
XTB has put together an in-depth guide on the markets that will be influenced by the election and the winning presidential candidate. Sign up for an account with XTB to stay informed with the latest market news and updates.
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