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Will BRICS Markets Be Equally Affected by Trump's Policies?

USAMonday, January 6, 2025

Political leaders often influence stock markets, as seen with the recent US presidential election. The victory of Republican Donald Trump has caused uncertainty, making investors wonder how BRICS (Brazil, Russia, India, China, and South Africa) stock markets will be impacted. A study used two methods to answer this: an event-study approach with regression estimation of abnormal returns, and integrating data from social media, search queries, and polls.

The results show mixed effects. While some markets, like China and Brazil, took significant hits, India and South Africa were less affected. China's losses are linked to Trump's trade policies, such as tearing up deals, imposing tariffs, and labeling China a "currency manipulator. " Russia, however, might benefit from Trump's positive stance towards Vladimir Putin and expectations of reduced sanctions.

south africa brazil russia india china vladimir putin republican donald trump

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