As the spectre of a second Trump presidency looms, the geopolitical landscape faces potential upheaval, unleashing fresh volatility across global markets. A Trump victory will likely invigorate certain sectors of the US equities market, particularly those aligned with his pro-business and deregulatory agenda, along with small-cap stocks, which are more domestically focused and sensitive to tax policies. Trump has a stated goal of weakening the dollar to boost exports, however, his policies might paradoxically strengthen the greenback in the short term, although in the medium term, expansive fiscal policies and rising deficits would weigh on the dollar's strength.

Trump's trade policies could also pose significant challenges, with a renewed focus on protectionism leading to further trade barriers, particularly with the UK and EU. Moreover, Trump's potential tariffs on Chinese goods might drive China to seek closer economic ties with Europe as it looks to offset losses in the US market.