NEW YORK, Sept 16 V7N- U.S. stock futures and the dollar saw minimal movement on Sunday following an incident involving Republican presidential candidate Donald Trump. The FBI reported that a potential assassination attempt occurred outside Trump's golf course in West Palm Beach, Florida. Secret Service agents confronted a gunman near the property line, firing at least four shots.
S&P 500 e-minis were slightly down by 0.04%, and the Dollar Index, which measures the U.S. currency's strength against six major peers, decreased by 0.03% to 101.07. Bitcoin fell 0.7% to $59,445, with Trump, a pro-cryptocurrency advocate, potentially influencing the market.
Despite the dramatic news, market reactions were muted. Analysts suggest the incident could increase volatility, especially in foreign exchange markets, due to thin trading volumes. Karl Schamotta, chief market strategist at Corpay, noted that foreign exchange rates might face turbulence in the coming hours.
Earlier in the year, markets that benefit from a potential Trump presidency had gained after Trump survived an assassination attempt in Pennsylvania on July 13. However, the "Trump trade" faced pressure last week following a debate between Trump and Vice President Kamala Harris, which shifted betting markets to favor Harris.
Michael Brown, senior research strategist at Pepperstone, mentioned that there could be renewed interest in the "Trump Trade" if Trump sees a boost in the polls from this incident. However, with the Federal Reserve's meeting on September 17-18 approaching, market conviction may remain cautious until further clarity on interest rate decisions is provided by Fed Chair Jerome Powell and the central bank.
Betting markets showed limited reaction, with Harris’ odds at 56 cents and Trump’s at 47 cents in PredictIt’s 2024 presidential election market. The Federal Reserve’s upcoming meeting is a key focus, with uncertainty over the extent and pace of potential interest rate cuts influencing market expectations.
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