The contract is gaining over 1% at 09:00. The WIG20 contract initially limited gains, but is responding minute by minute to the situation on global indices and a slight withdrawal of the dollar. Interestingly, in view of the increasing likelihood of Trump winning the US election, we saw a distinct pull back in futures contracts on the German DAX. However, we currently have a reversal of the trend and the DAX is gaining along with record levels on futures contracts on the American S&P 500 index.
Theoretically, Donald Trump’s policy can have a negative impact on European companies, due to its protectionist policy of imposing tariffs and uncertainty about further support for Ukraine. During his previous presidency, tariffs introduced by Trump had a very negative impact on the entire automotive sector in Europe. Nevertheless, the positive global sentiment is currently having a good impact on European indices, although this may only be an initial reaction in anticipation of the full election results and the first announcements of the new president.
Looking at specific companies in the WIG20 it is hard to find a correlation between Trump’s likely victory and the behaviour of entities. The biggest gains are made by the Pepco Group and banks. On the other hand, there are losses for KGHM, even though this company should benefit from a stronger dollar wave. However, Trump’s choice could be mixed for China, which negatively affects copper prices in the medium term.
Source: https://ceo.com.pl/oto-reakcja-gpw-na-wynik-trumpa-91765
