Invest
Stock market rallies despite Trump’s impeachment
The US market has continued to rally, ignoring Trump’s impeachment trial and instead focusing on Biden’s stimulus package, an expert has said.
Stock market rallies despite Trump’s impeachment
The US market has continued to rally, ignoring Trump’s impeachment trial and instead focusing on Biden’s stimulus package, an expert has said.
The market is continuing its rally, with the S&P500 now up 75 per cent from its lows during the height of the COVID-19 pandemic, while the NASDAQ100 has doubled.
Chief executive and founder of deVere group Nigel Green believes investors are unfazed by the political tension and are instead focusing on Biden’s economic support package.
The comments from Mr Green come as the Senate declares the second impeachment trial for the former president as constitutional, despite calls from Republicans to reject proceedings.
Democrats now have up to 16 hours over the next two days to make their case in the Senate to convict Trump.
“The second impeachment of a US president – a major, far-reaching political event in the world’s largest economy – would normally have Wall Street and stockmarkets around the world in a tailspin,” Mr Green said.
“But this is not the case.
“Shares in Asia Pacific were higher on Wednesday, with Chinese stocks leading gains among the region’s major markets. The pan-European Stoxx 600 moved marginally above the flatline at the opening, while US futures point to new record highs.”
Mr Green believes markets are shrugging off the impeachment noise because Trump’s chances of acquittal remain high.
Instead, he opined the market is looking towards the US$1.9 trillion stimulus package outlined as part of Joe Biden’s plan to bail out the US economy.
“Unless the Democrats are unable to get through another round of fiscal stimulus because of the proceedings, it’s likely that markets will continue to ignore the Senate.
“Investors’ focus is on President Biden’s proposed stimulus package, specifically whether it will be watered down and when it will be rolled out – with the hope it will be sooner rather than later.
“In addition, they are looking ahead to see the Biden administration’s policies in action and what they really mean for what sectors and industries,” he said.
Mr Green said investors will also be eyeing the release of January’s CPI figures as they attempt to predict when US inflation will overshoot due to the fiscal stimulus.
Treasury Secretary Janet Yellen and Federal Reserve chair Jerome Powell have both been keen to play down the risk of higher inflation from the stimulus. However, rising Treasury yields and measures of inflation expectations indicate otherwise.
The deVere CEO concludes: “It may be round two for impeaching Trump, but it’s set to have very little impact on markets. They just aren’t fazed. They’re looking ahead, not back.”
RELATED ARTICLES
About the author
About the author
Economy
RBA May Consider Early Rate Hike Amidst Economic Growth and Inflation Concerns
Australia's economic landscape is witnessing a dynamic shift as the Reserve Bank of Australia (RBA) grapples with the implications of recent growth figures and inflationary pressures. The latest GDP ...Read more
Economy
Inflation concerns grow as consumer price index rises, prompting potential interest rate hikes
The latest Consumer Price Index (CPI) data has sparked fresh concerns about inflation in Australia, with experts suggesting that further interest rate hikes may be on the horizon. The CPI, a key ...Read more
Economy
State Street economist comments on latest labour force data amid market anticipation
The latest labour force data, released today, has prompted a measured response from financial experts, with insights provided by Krishna Bhimavarapu, APAC Economist at State Street Investment ...Read more
Economy
RBA's interest rate hike impacts Australian employment landscape
The Reserve Bank of Australia (RBA) has decided to increase interest rates by 25 basis points, raising the cash rate to 3.85%. This move, aimed at controlling inflation, has elicited responses from ...Read more
Economy
RBA’s latest rate hike sparks debate over economic impact
In a surprising move, the Reserve Bank of Australia (RBA) has increased the cash rate, signalling a significant shift in its monetary policy approach. This decision comes amid a backdrop of unexpected ...Read more
Economy
When inflation reopens the rate door: A broker-sector case study in defending margins, clients and share
Australia’s latest trimmed-mean inflation reading at 3.3% has revived the prospect of another Reserve Bank move and put lenders, brokers and borrowers back on a tightening footing. This case study ...Read more
Economy
Inflation rise dampens hopes for interest rate cuts as employment dynamics shift
In a development that has dashed hopes for an interest rate cut, Australia's Consumer Price Index (CPI) has surged back to 3.8%, erasing the progress made since October. This unexpected rise in ...Read more
Economy
Inflation surge poses challenges for small businesses and consumers
The latest inflation figures have sparked concern among Australian businesses and consumers alike, with the rising costs expected to influence the Reserve Bank of Australia's (RBA) upcoming interest ...Read more
Economy
RBA May Consider Early Rate Hike Amidst Economic Growth and Inflation Concerns
Australia's economic landscape is witnessing a dynamic shift as the Reserve Bank of Australia (RBA) grapples with the implications of recent growth figures and inflationary pressures. The latest GDP ...Read more
Economy
Inflation concerns grow as consumer price index rises, prompting potential interest rate hikes
The latest Consumer Price Index (CPI) data has sparked fresh concerns about inflation in Australia, with experts suggesting that further interest rate hikes may be on the horizon. The CPI, a key ...Read more
Economy
State Street economist comments on latest labour force data amid market anticipation
The latest labour force data, released today, has prompted a measured response from financial experts, with insights provided by Krishna Bhimavarapu, APAC Economist at State Street Investment ...Read more
Economy
RBA's interest rate hike impacts Australian employment landscape
The Reserve Bank of Australia (RBA) has decided to increase interest rates by 25 basis points, raising the cash rate to 3.85%. This move, aimed at controlling inflation, has elicited responses from ...Read more
Economy
RBA’s latest rate hike sparks debate over economic impact
In a surprising move, the Reserve Bank of Australia (RBA) has increased the cash rate, signalling a significant shift in its monetary policy approach. This decision comes amid a backdrop of unexpected ...Read more
Economy
When inflation reopens the rate door: A broker-sector case study in defending margins, clients and share
Australia’s latest trimmed-mean inflation reading at 3.3% has revived the prospect of another Reserve Bank move and put lenders, brokers and borrowers back on a tightening footing. This case study ...Read more
Economy
Inflation rise dampens hopes for interest rate cuts as employment dynamics shift
In a development that has dashed hopes for an interest rate cut, Australia's Consumer Price Index (CPI) has surged back to 3.8%, erasing the progress made since October. This unexpected rise in ...Read more
Economy
Inflation surge poses challenges for small businesses and consumers
The latest inflation figures have sparked concern among Australian businesses and consumers alike, with the rising costs expected to influence the Reserve Bank of Australia's (RBA) upcoming interest ...Read more
