Global equity markets and the dollar wavered as investors mulled the impact of the assassination attempt on Donald Trump, while the luxury goods sector was slammed by plunging profits at both British fashion label Burberry and Swiss watch group Swatch.
European stocks edged downwards after a divergent performance in Asia, with the focus mainly on developments in the United States after Trump was wounded Saturday at a rally before this week’s Republican convention.
“Markets were surprisingly calm given the assassination attempt on US presidential candidate Donald Trump,” said AJ Bell analyst Dan Coatsworth.
“While equities saw a small pullback in parts of the world, there was no panic on the markets as a result of the weekend of violence.”
Plus side
While the odds of him 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 — but also an increase in tensions with China with fresh tariffs possible. Investors took the news in their stride.
“There has not been an enormous reaction in the markets to the attempted assassination of Donald Trump,” noted Finalto analyst Neil Wilson.
On the corporate front, Burberry stock tumbled 17 percent after it announced the immediate departure of chief executive Jonathan Akeroyd as it posted “disappointing” results with the sector pressured by weak Chinese demand.
Another heavy blow came as Swatch posted plunging profits owing to the luxury market crisis in China — warning that sales in the country were likely to remain difficult this year.
In Paris, Gucci owner Kering saw its stock slide 3.6 percent and LVMH shed 1.9 percent in value on the back of concerns for the wider luxury sector.
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.
