Table of Contents:
Bank stocks on the rise
Shares in major US banks have seen a significant increase after the recent presidential elections. Citigroup, JPMorgan, Wells Fargo and Goldman Sachs saw their stocks grow by 9%, 10%, 12% and 13% respectively. This leap has been fueled by investor expectations regarding the fiscal policies that the new President Donald Trump intends to implement. Investors are optimistic that Trump will keep his promises to reduce taxes and ease regulation in the banking sector
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Trump’s promises
During the election campaign, Trump made several promises that attracted the attention of investors. One of the most significant was the proposal to reduce the corporate tax rate from 21% to 15%. In addition, it announced its intention to eliminate ten regulations for each new rule introduced, thus creating a more favorable environment for banks. This strategy was seen as a clear advantage over his opponent Kamala Harris, who had proposed an increase in corporate taxes
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Reforms and changes in the sector
In addition to fiscal promises, Trump has also stated that he wants to review key regulatory bodies, with the intention of firing prominent figures such as the president of the Securities and Exchange Commission, Gary Gensler. These changes could have a significant impact on the way banks operate and are regulated in the United States. Investors are closely monitoring these dynamics, as they could affect not only banks’ equity performance, but also the entire financial sector
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Market performance and future prospects
Capital raising since the beginning of the year has reached 14.3 billion euros, exceeding the annual target already updated in July. This result is particularly significant in a context of economic and political uncertainties. Corporate quarterly reports, such as those of Poste Italiane, are in the spotlight, and investors are eager to see how the new policies will affect financial results. In addition, the start of production of the Bouillac solar plant in France represents an important step towards the diversification of companies’ activities, contributing to a better than expected commercial performance in the euro area
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