In a fateful incident during a rally in Butler, Pennsylvania on Saturday, Former President Donald Trump was injured in an assassination attempt.
Several bullet shots were fired at Donald Trump’s rally and one such shot ripped the upper part of his right ear.
Trump was immediately rushed to a safer place by the Secret Service and the shooter, who authorities identified only as a man from Pennsylvania about 20 years old, was killed by law enforcement.
Citing law enforcement sources, NBC News reported that one spectator was killed and two others are in critical condition.
US President Joe Biden condemned the shooting and said that ‘there’s no place in America for this kind of violence’.
Later, ex-US President Trump released a statement, saying he was ‘fine’ and undergoing a medical check-up.
“I knew immediately that something was wrong in that I heard a whizzing sound, shots, and immediately felt the bullet ripping through the skin. Much bleeding took place, so I realized then what was happening. GOD BLESS AMERICA,” he added.
Speaker Mike Johnson said that the House of Representatives “will conduct a full investigation of the tragic events” at the Trump rally.
Market implications
Financial markets could see a bit of risk aversion at the weekly open, putting a fresh bid under the US Dollar. Risk currencies such as the Australian Dollar and Pound Sterling could witness some pullback after the previous week’s solid performance while Gold price and the Japanese Yen could capitalize on early risk-off flows.
However, risk-off sentiment could weather out soon, as the focus shifts back to expectations surrounding the US Federal Reserve (Fed) interest-rate cuts and China’s economic prospects, with the second-quarter Gross Domestic Product (GDP) data for release early Monday.
Risk sentiment FAQs
In the world of financial jargon the two widely used terms “risk-on” and “risk off” refer to the level of risk that investors are willing to stomach during the period referenced. In a “risk-on” market, investors are optimistic about the future and more willing to buy risky assets. In a “risk-off” market investors start to ‘play it safe’ because they are worried about the future, and therefore buy less risky assets that are more certain of bringing a return, even if it is relatively modest.
Typically, during periods of “risk-on”, stock markets will rise, most commodities – except Gold – will also gain in value, since they benefit from a positive growth outlook. The currencies of nations that are heavy commodity exporters strengthen because of increased demand, and Cryptocurrencies rise. In a “risk-off” market, Bonds go up – especially major government Bonds – Gold shines, and safe-haven currencies such as the Japanese Yen, Swiss Franc and US Dollar all benefit.
The Australian Dollar (AUD), the Canadian Dollar (CAD), the New Zealand Dollar (NZD) and minor FX like the Ruble (RUB) and the South African Rand (ZAR), all tend to rise in markets that are “risk-on”. This is because the economies of these currencies are heavily reliant on commodity exports for growth, and commodities tend to rise in price during risk-on periods. This is because investors foresee greater demand for raw materials in the future due to heightened economic activity.
The major currencies that tend to rise during periods of “risk-off” are the US Dollar (USD), the Japanese Yen (JPY) and the Swiss Franc (CHF). The US Dollar, because it is the world’s reserve currency, and because in times of crisis investors buy US government debt, which is seen as safe because the largest economy in the world is unlikely to default. The Yen, from increased demand for Japanese government bonds, because a high proportion are held by domestic investors who are unlikely to dump them – even in a crisis. The Swiss Franc, because strict Swiss banking laws offer investors enhanced capital protection.
