Trump’s taxes, China slowdown, stock market risks

29 sept. 2020

As the US Presidential Race reaches the final stage, the war of compromising evidences is gaining momentum. The attack of the Democrats at the start of the week looks pretty convincing. We are talking about information about the taxes paid by Trump, published by the New York Times. According to their information Trump in the year of his election, paid only $ 750 in income tax. Thus, almost any resident of the United States can now claim to have paid more taxes than the President.

In addition, information appeared that Trump is losing millions of dollars on his golf courses and has hundreds of millions of debts that need to be paid off in the nearest future.

Among other news, it is worth noting the return of optimism to the global stock markets. As a result, even the European stock markets have strengthened noticeably, and the Copenhagen Stock Exchange index was able to renew its historical highs.

Note that the markets generally have no particular reason for optimism. Stimulus in the US are far from the adoption, the second wave in Europe has not gone away, the number of deaths from COVID-19 exceeded 1 mln, and the recovery of the Chinese economy, according to Bloomberg estimates, has slowed in September amid weak real estate and car sales, declining stock market, and deteriorating confidence in the business environment. That is, economic growth in China began to lose momentum.

Morgan Stanley, meanwhile, named 4 main risks for the US stock market: budget crisis; the second wave of coronavirus in the United States; the exhaustion of the monetary policy potential and the Presidential elections of the US. So, the current rise in stock markets can be used as an opportunity to sell more expensive.