FX.co ★ Goldman Sachs warns of risks posed by Trump win

Goldman Sachs assumes that another presidency of Donald Trump, the former American leader, poses a serious risk to Europe's stock market.

According to currency strategists at the investment bank, much of the European stock market could face a major setback in case Donald Trump is elected US president. Some industries, in particular the chemical and automotive ones, would suffer the most if the eccentric Republican takes office again. The EU stock market would have a tough time, with Germany’s benchmark DAX, mid-cap index MDAX, and "economically sensitive cyclical sectors" being the most exposed to losses.

Another risk comes from Trump’s possible refusal to continue supporting Ukraine in its battle against Russia, Goldman Sachs pointed out.

The indices least exposed in case of a Trump win would be the blue-chip Swiss market index and Britain's benchmark FTSE 100. At the same time, such industries as healthcare, defense, and consumer staples could gain momentum amid political uncertainty.

Goldman Sachs analysts admit that Trump could tighten US tariffs on imports from the EU, Canada, and Mexico. Currency strategists at Barclays Plc share this view, noting that new tariffs or tighter existing ones would have a negative impact on European and Chinese equities.

In addition, Trump came out against the idea of a central bank-issued digital dollar with a view to protecting Americans "from government tyranny". According to the billionaire, such a currency would give the government absolute control over taxpayers' money. "They would take your money and wouldn’t even know it’s gone," Trump added.