The market is in an uproar following a failed assassination attempt on Donald Trump, an act that might as well have cemented his presidency. This prospect has raised sentiments for a looser regulatory environment, extensions of tax cuts, and deregulation in various sectors that will not only boost the market environment, but also prioritise America's first. The assassination attempt appeared to improve Trump's chances of winning the election, with online betting site PredictIt showing increased odds for a Trump victory. Investors are also optimistic on potential Fed rate cuts, with some anticipating up to three cuts by the end of the year with this changing market condition.

EQUITY

The Dow Jones closed at an all-time high on Monday, outperforming the S&P 500 and Nasdaq. Fed Chair Powell stated that policymakers won't wait for inflation to reach 2% before considering interest rate cuts, although they do seek greater confidence that inflation will return to the 2% target. Market expectations for a potential rate cut in September are growing, although some analysts caution that more favourable data is needed to justify a policy change.

GOLD

Gold prices have been edging higher, nearing all-time highs on Monday. Powell's recent remarks suggest that the Fed is laying the groundwork for upcoming policy easing, with a rate cut in September now fully priced in by markets. Investors are closely watching for upcoming U.S. economic data, particularly retail sales figures, as well as comments from Fed governors for further insights into monetary policy direction.

OIL
Oil prices ticked down after China's slowing economic growth data, which was less than expected in the second quarter. This slowdown, along with property market issues and job insecurity, has cast doubt on Chinese oil demand. However, growing expectations of U.S. interest rate cuts tempered the loss, although short term technicals have reversed the price into a downtrend. The potential for a Trump presidency in 2024 has also influenced market sentiment, given his past tough stance on China.

CURRENCY

The dollar gained even on the Trump presidency supposition, which should be the opposite, although it is at early June's low. Asian currencies weakened in response, with the yen underperforming due to continued intervention threats, while China's weak GDP further eroded regional sentiment. Cryptos reacted the most as Trump is well known to endorse the tech, in addition to his strong connection to Fed Chair Powell, who was brought into office by Trump.