Stocks jump, dollar steady after FBI says it’s investigating another assassination attempt on Trump By Reuters

By Saqib Iqbal Ahmed

NEW YORK (Reuters) – U.S. futures and the dollar were little changed on Sunday after Republican presidential candidate Donald Trump was safe from what the FBI said appeared to be an assassination attempt outside the golf course of Trump in West Palm Beach, Florida.

Secret Service agents engaged a gunman in some bushes near the golf course and fired at least four rounds of ammunition, law enforcement officials said during an afternoon news conference.

they decreased by 0.04%. The dollar index, which measures the US currency’s strength against six major peers, fell 0.03 percent to 101.07.

it was 0.7% lower on the day at $59,445. Trump has positioned himself as a pro-cryptocurrency candidate.

While there was little market reaction to the news, analysts said the incident had the potential to fuel volatility.

“Currencies could experience turbulence in the coming hours as news of a second assassination attempt arrives amid subdued trading volumes,” said Karl Schamotta, chief market strategist at payments firm Corpy in Toronto. .

Asset classes and sectors seen benefiting from a second Trump term received a boost earlier this year after Trump survived an assassination attempt in Pennsylvania on July 13.

The so-called “Trump trade,” however, came under pressure last week after a closely watched debate between Trump and Vice President Kamala Harris left betting markets placing a higher probability of a Harris victory in November.

“Maybe we’ll see how to get back into the ‘Trump Trade’ if this sees Trump get a boost in the polls like we saw after the previous assassination attempt – boosting both stocks and the dollar,” said Michael Brown, senior researcher. strategist at online broker Pepperstone, London.

“That said, with the FOMC looming on Wednesday, conviction among market participants will likely be lacking until we hear from Powell & Co,” he said.

Betting markets saw little reaction to Sunday’s incident, with Harris’ odds in the PredictIt 2024 presidential general election market at 56 cents, while Trump’s odds were at 47 cents.

The Federal Reserve is under scrutiny as uncertainty swirls about how much the US central bank will cut interest rates in September. 17-18 monetary policy meeting and the pace at which it will reduce borrowing costs in the coming months.

“The dollar could still rally in a modest ‘Trump trade’ recovery, but any effect should be relatively modest in magnitude,” Corpoay’s Schamotta said.