Bank shares are up sharply
The recent presidential elections in the United States had a significant impact on the stock market, especially on the shares of major banks. Citigroup, JPMorgan, Wells Fargo, and Goldman Sachs recorded significant increases, of 9%, 10%, 12% and 13%, respectively. This jump was fueled by investor expectations regarding the fiscal policies promised by Donald Trump, who said he wanted to lower taxes and reduce regulation in the banking sector
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Trump’s fiscal promises
During the election campaign, Trump announced an ambitious plan to reduce the corporate tax rate from 21% to 15%. This proposal has aroused enthusiasm among investors, who see it as an opportunity for a more favorable economic environment. In addition, Trump has promised to eliminate ten regulations for each new one introduced, an initiative that could significantly simplify banks’ operations and encourage
investment in the sector.
Revolution in regulation
In addition to fiscal promises, Trump also plans to review key regulatory bodies, including the Securities and Exchange Commission (SEC). He said he wanted to fire prominent figures, such as the president of the SEC, Gary Gensler, to give a clear signal of change. This strategy aims to create a climate of confidence among investors and to stimulate economic growth, fundamental elements for the banking sector.
Capital raising on the rise
In addition to these dynamics, capital raising since the beginning of the year has reached 14.3 billion euros, exceeding the annual target already updated in July. This figure highlights a strong interest on the part of investors in the banking market, which is proving resilient and ready to seize the opportunities offered by the new fiscal policies. Banks, therefore, are in a privileged position to benefit from a changing economic environment, which could lead to additional investments and growth in the near future
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