Trump’s approval rating has dropped alongside the intensification of the coronavirus crisis. Yohay Elam, an analyst at FXStreet, details four market scenarios if the trend continues.
Key quotes
“Trump landslide victory: In the unlikely case that the public aligns behind Trump despite the initial slow response and Republicans win both houses of Congress, markets may surge. That seems less likely now.”
“Trump wins, Democrats hold House: The focus will likely remain on the impact of the virus and the elections would only be of influence closer to the vote.”
“President Biden, Republicans retain Senate: Stocks may come under additional pressure. However, if Republicans hold onto the Senate, investors would be comforted.”
“Democratic wave: Investors may fear stricter financial regulation under a unified Democrat-controlled government, and stocks could fall.”
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