Thursday, 7 November 2024 Reading time : 2 minutes

Share prices soared on Wall Street as investors celebrated Donald Trump's victory. The S&P 500 rose 2.5% on the first trading day after the election, hitting a new record high. The enthusiasm is fuelled in part by hopes that the president-elect could implement corporate tax cuts and initiate a new phase of deregulation.

At a sector level, financials were the biggest beneficiaries, gaining over 6% on Wednesday. Among the day's winners were JPMorgan Chase (+11.5%), Wells Fargo (+13.1%) and Citigroup (+8.4%). 

Shares in electric car maker Tesla also soared, rising by more than 14%. Tesla CEO Elon Musk is one of Trump's most prominent supporters and, according to the Financial Times, could obtain a position in the Republican's government.

Among the biggest underperformers was the consumer staples sector (-1.6%), which includes the consumer goods giant Procter & Gamble (-2.8%), the discounter Target (-2.4%) and the beverage company Pepsico (-1.8%). The industry is likely to be affected by Trump's planned import tariffs. According to Reuters, the Republican is considering a 10% import tariff on all goods and a 60% levy on imports from China. He has also threatens to impose a 25% tariff on imports from Mexico. While companies that produce exclusively in the US could benefit, many corporations have an international focus and rely on trade, for example to source their raw materials. The fear is that new trade barriers and conflicts could increase costs, which in turn could translate into higher prices for consumer goods.

Of course, there is no guarantee that financial market speculation will materialise. Our current subscription range includes products on the above-mentioned stocks. As they have a quanto feature, investors are not exposed to any currency risk.

Barrier Reverse Convertible on US Banks
8.00% p.a. BRC on JPMorgan Chase, Wells Fargo und Citigroup
Barriere: 70%
Valor: 139 433 788

Barrier Reverse Convertible on Tesla
15.00% p.a. BRC on Tesla
Barriere: 65%
Valor: 139 433 786

Barrier Reverse Convertible on US Consumer Staples
8.00% p.a. BRC on Pepsico, Procter&Gamble und Target
Barriere: 70%
Valor: 139 433 789

Indicative terms

 

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