What's at stakeRenewable energy development in the US is expected to continue. It's the Trump focus on offshore issues that has the markets upset. Even talk of removing the incentives Biden gave to the industry.
But this doesn't affect Northland.
I was surprised the stock dropped. Brookfield Renewables felt the downdraft also.
Searching for an answer, I thought interest rates will rise--
Investors have been growing increasingly alarmed about the scale of U.S. government debt and fiscal deficits adding to it, with worries that it will push up borrowing costs, or Treasury yields.
Trump's spending plans could add $7.5 trillion to deficits over 10 years, according to one estimate, far greater than what Harris had proposed. Treasury yields rose almost 50 basis points in October, when markets were pricing in a higher likelihood of a Trump win.
Inflationary pressures from Trump's policies would leave the Fed with less room to cut rates, which will keep Treasury yields elevated.
A Trump win is also likely to suppress growth in Europe and Asia, as tariffs and other policies put pressure on those economies. More pressures on the euro, yen, Swiss franc and other currencies, and higher inflation will reduce the room central banks there have to cut rates as needed.
Analysts expect global yields to rise.
What's at stake for global markets in a Trump presidency