The results of the usa presidential election were announced on Wednesday (6th), with former usa President Trump re-elected. The Economic Research and Investment Strategy Department of GreatNew Bank believes that although the valuation of US stocks is on the high side, the performance of leading technology companies in the recent period is strong or positive, which is expected to continue to boost the investment atmosphere in the short term. In the medium to long term, it is also expected to benefit from interest rate cuts and the development of ai-related technologies. If the US employment market remains stable and increases investor confidence in a soft landing of the usa economy, it will also help the overall US stock market continue to outperform other mature markets.

GreatNew Bank expects that usa bonds may be under pressure in the short term. Trump's advocacy of expansionary fiscal policies may stimulate inflation and may also increase market concerns about the burden of the usa federal government debt, potentially affecting the prospects of interest rate cuts by the Federal Reserve, leading to upward pressure on short-term Treasury yields. The bank has temporarily adjusted its view on sovereign and investment-grade corporate bonds to 'neutral'.

In addition, GreatNew Bank maintains a 'slightly bullish' view on the US stock market, and the us Dollar Index view has been raised to 'neutral/preferred'. Market expectations for a rate cut by the Federal Reserve next year may be lowered, coupled with Trump's advocacy of imposing tariffs, which may bring new shocks to international trade, and non-us Dollar currencies may be under pressure in the short term. (js/w)

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