From Investing.com: 2024-07-26 01:58:57

Goldman Sachs analysts are concerned about the potential impact of a Donald Trump presidency on Chinese equities, particularly if he follows through with steep tariffs on Chinese goods. Sectors sensitive to the U.S., like technology hardware and transportation, are expected to suffer, while consumer tech and energy are seen as better positioned.

Chinese equities have shown an inverse correlation with Trump’s presidential odds, with any favorable outlook for the Republican nominee denting the market. Historical data suggests that defensives like energy have performed well, while tech and consumer stocks have struggled.

A 60% tariff on Chinese goods proposed by Trump could have a significant impact on corporate profits, with an expected 13% earnings impact on Chinese exporters to the U.S. China’s stock indexes have seen steep losses, hitting five-month lows amid growing uncertainty over the U.S. presidential election.

Despite Trump currently holding a slight lead over Democratic candidate Kamala Harris, recent polls show Harris catching up and even outperforming Biden in a matchup against the former president. A poll by the New York Times indicates a tight race ahead between the two candidates.



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