Wall Street stocks advance on expectation of Trump election win / Photo: © AFP
Wall Street stocks advance on expectation of Trump election win
Wall Street stocks pushed higher at the start of trading on Monday as traders weighed the impact of the failed assassination attempt on Donald Trump.
The blue-chip Dow and broader S&P 500 index set fresh all-time highs as investors got their first chance to trade following the weekend shooting attack that left Trump with only superficial injuries.
"There is a bid in the equity futures market following the assassination attempt on former President Trump at a campaign rally in Butler, PA," Briefing.com analyst Patrick O'Hare said, referring to indications of a positive opening in a note to clients ahead of the start of trading.
"That isn't the only factor driving the equity futures market, but it is a prominent factor rooted in speculation that the failed attempt has boosted Mr. Trump's re-election chances," he added.
While the odds of Trump beating President Joe Biden had been rising in recent weeks, they got an extra lift from the shooting.
Observers said a Trump victory could see lower corporate taxes -- a boost for companies' bottom lines.
A strong performance by Goldman Sachs also boosted sentiment. The bank beat analyst expectations by more than doubling profit to $2.9 billion. Its shares climbed 1.2 percent.
Shares in iPhone-maker Apple rose more than two percent and struck a record high.
Eyes were also on a key meeting of China's top leadership in Beijing, with hopes for measures to boost the world's number two economy, which grew less than expected in the second quarter according to official data Monday.
China has become a key luxury goods market in recent years and the slow growth plus disappointing results by two firms hammered sentiment in the sector and helped push European stocks lower.
Burberry stock tumbled more than 18 percent after it announced the immediate departure of chief executive Jonathan Akeroyd as it posted "disappointing" results.
Patrick Munnelly at Tickmill said Burberry's shares touched a 14-year low and has lost nearly half of its value since the start of year, making it the worst performer on the FTSE 100.
While Burberry's repositioning has made progress, "significant efforts are required to compensate for years of underinvestment in the brand," said Munnelly.
Another heavy blow came as Swatch posted plunging profits owing to the luxury market crisis in China and warning that sales in the key market were likely to remain difficult this year, sending its shares down more than nine percent.
In Paris, Gucci owner Kering saw its stock drop more than five percent and LVMH shed 2.8 percent in value on the back of concerns for the wider luxury sector.
- Key figures around 1530 GMT -
New York - Dow: UP 0.6 percent at 40,258.43 points
New York - S&P 500: UP 0.7 percent at 5,655.21
New York - Nasdaq Composite: UP 1.0 percent at 18,584.58
London - FTSE 100: DOWN 0.9 percent at 8,182.96 (close)
Paris - CAC 40: DOWN 1.2 percent at 7,632.71 (close)
Frankfurt - DAX: DOWN 0.8 percent at 18,590.89 (close)
EURO STOXX 50: DOWN 1.2 percent at 4,983.11 (close)
Hong Kong - Hang Seng Index: DOWN 1.5 percent at 18,015.94 (close)
Shanghai - Composite: UP 0.1 percent at 2,974.01 (close)
Tokyo - Nikkei 225: Closed for a holiday
Dollar/yen: DOWN at 157.85 yen from 157.88 yen on Friday
Euro/dollar: UP at $1.0913 from $1.0906
Pound/dollar: DOWN at $1.2983 from $1.2989
Euro/pound: UP at 84.07 pence from 83.97 pence
Brent North Sea Crude: DOWN 0.2 percent at $84.86 per barrel
West Texas Intermediate: DOWN 0.3 percent at $81.98 per barrel
burs-rl/gv
L.Graham--TNT
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