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Will the stock markets react to the results of the U.S. presidential elections?

Large external deficits and loose monetary policy fueling inflation, loss of geopolitical hegemony and weaponization of dollar via trade, financial and technology sanctions could be deciding factors if the American currency were to lose its dominant position, according to Nouriel Roubini, an economist from New York’s University. The potential shift is to take years, though and isn’t certain. For now, we lack a safe alternative. Despite Chinese efforts to make yuan more appealing to countries and investors around the world, it still isn’t one.

Results of the U.S. presidential elections may have less impact on the markets than investors expect, according to financial specialists as they warn against “overthinking it”. The historical analysis made by SunTrust Investment Advisory Group shows that during the last 75 years, presidential elections had little impact on the performance of the S&P 500 index.

In Berlin, lawmakers are questioning a top adviser to Chancellor Angela Merkel as well as the country’s financial industry’s watchdogs concerning Wirecard AG’s scandal. The company that offered Internet payment and processing services collapsed in June after admitting that a quarter of its balance sheet didn’t exist. 3.2 billion euros of its debt are most probably lost with the issue at hand being Wirecard AG’s lobbying and connections within the German government.

Sixteen-digit numbers may not be enough in Japan as the number of credit cards raised during the COVID pandemic. With six first digits denoting bank and country data, there may soon be a shortage of combinations. Cashless and online payment became more popular recently, but Japan’s ratio of those transactions is still significantly lower than that of South Korea or China. Credit card companies are considering adding one more digit to credit cards numbers.

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18 December 2024