Election Day in the US is creeping ever closer. With the race looking so tight, traders are paring the so-called Trump trades. The US dollar, long favored as a prime play for a Donald Trump victory, weakened after weekend polling numbers suggested Kamala Harris gaining an edge in some swing states — with even Judy Dimon, wife of JPMorgan CEO Jamie Dimon, knocking on doors in Michigan to get out the vote for the Democratic presidential candidate. All the while, China is preparing for Trump’s potential return to the White House by taking steps to attract foreign money. Still, some believe Trump’s connection with Elon Musk, someone who’s enjoyed special treatment in China, is likely to bode well for Chinese President Xi Jinping.
More Chinese stimulus may be on the way, but it’s unlikely to put the market fully at ease. Chinese lawmakers are gathering to sign off on a fiscal package that’s set to run into trillions of yuan, resources meant to take the pressure off local governments and recapitalize major state lenders, according to Goldman Sachs, HSBC and other banks. The stakes have grown for this week’s conclave of the Standing Committee of the National People’s Congress, the executive body of the nation’s top legislature, but it may be months before detailed plans to support consumption come into focus.
