Markets

Trump's Re-election to Boost Equities in Africa, Middle East, Says J.P. Morgan

According to J.P. Morgan, these tariffs could strengthen the U.S. dollar and push bond yields higher, positioning the MENA region to benefit from these trends.

November 12, 2024
722 1 minute read
Trump's Re-election to Boost Equities in Africa, Middle East, Says J.P. Morgan

Donald Trump’s possible re-election could drive growth in emerging market equities in the Middle East and North Africa (MENA) region due to a stronger U.S. dollar, rising U.S. bond yields, and anticipated global trade policy changes, according to a J.P. Morgan report released Tuesday.

“We favor MENA markets with currencies pegged to the dollar over regions with emerging market FX exposure in Central and Eastern Europe, the Middle East, and Africa (CEEMEA),” noted analysts led by David Aserkoff at J.P. Morgan.

For the CEEMEA region, two primary uncertainties affecting equities in 2025 include U.S. tariff policies and China’s economic stimulus measures.

Trump’s recent sweeping election victory has placed a spotlight on his campaign commitment to impose tariffs of over 60% on Chinese imports.

According to J.P. Morgan, these tariffs could strengthen the U.S. dollar and push bond yields higher, positioning the MENA region to benefit from these trends. Increased tariffs could also redirect cheaper Chinese exports into other global markets, further impacting trade dynamics.

Also Read: JP Morgan Among Managers to Assist Nigeria in its Upcoming Eurobond

The MENA region is expected to benefit most, as it lacks a large manufacturing sector that would compete directly with Chinese imports, unlike other CEEMEA nations like Poland and Turkey, which could face negative impacts from increased Chinese trade flows, J.P. Morgan observed.

Additionally, J.P. Morgan upgraded its rating on Greek equities to “overweight,” citing solid economic growth and robust quarterly earnings.

The brokerage maintained an “overweight” position for South Africa and the UAE, upheld a “neutral” rating on Saudi Arabia and Turkey, and reaffirmed an “underweight” stance for Poland.

November 12, 2024
722 1 minute read
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Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.

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