Biden’s withdrawal reshapes US election, leaving Wall Street’s Trump trades uncertain
Wall Street is struggling to predict market moves as Joe Biden exits the presidential race, leading to uncertainty about the Democratic candidate.
Previously popular "Trump trades," like shorting Treasuries and investing in crypto, are now seen as risky. Investors remember 2016, when predictions about Trump's impact on markets quickly changed. Analysts are divided on how Trump's policies will affect the economy, with mixed views on the dollar and inflation.
Market factors like Federal Reserve policies and upcoming earnings reports also add to the unpredictability.
Amundi bets big on pound as JPMorgan urges caution
Amundi, Europe's largest asset manager, has turned positive on the pound, expecting it to reach $1.35 by year-end, despite JPMorgan's warnings of potential risks.
The pound's rally is driven by political stability under PM Keir Starmer and a stronger UK economy. Amundi's Andreas Koenig believes the pound is now less risky and a good portfolio diversifier. The pound has gained nearly 1.5% this year, outpacing other major currencies.
JPMorgan still predicts further gains, while Amundi sees any pullback as a buying opportunity, especially with the Bank of England's expected rate cuts.
Regulators approve first Ether ETFs in the US
Regulators have approved the first exchange-traded funds (ETFs) in the US that invest directly in Ether, the second-largest cryptocurrency.
Companies like BlackRock and Fidelity received approval from the US SEC, and they are temporarily waiving fees to attract investors. This move suggests a more relaxed US stance on digital assets.
While Bitcoin ETFs have been hugely popular, the demand for Ether ETFs is expected to be lower. Unlike Bitcoin, Ether ETFs won't offer staking rewards, and there's still debate on whether Ether should be treated as a security.
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