Wall Street stocks advance on expectation of Trump election win

LONDON — Wall Street stocks pushed higher at the start of trading on Monday as traders weighed the impact of the failed assassination attempt on Donald Trump.

The blue-chip Dow and broader S&P 500 index set fresh all-time highs as investors got their first chance to trade following the weekend shooting attack that left Trump with only superficial injuries.

"There is a bid in the equity futures market following the assassination attempt on former President Trump at a campaign rally in Butler, PA," Briefing.com analyst Patrick O'Hare said, referring to indications of a positive opening in a note to clients ahead of the start of trading.

"That isn't the only factor driving the equity futures market, but it is a prominent factor rooted in speculation that the failed attempt has boosted Mr. Trump's reelection chances," he added.

While the odds of Trump beating President Joe Biden had been rising in recent weeks, they got an extra lift from the shooting.

Observers said a Trump victory could see lower corporate taxes — a boost for companies' bottom lines.

A strong performance by Goldman Sachs also boosted sentiment. The bank beat analyst expectations by more than doubling profit to $2.9 billion. Its shares climbed 1.2 per cent.

Shares in iPhone-maker Apple rose more than 2 per cent and struck a record high.

Eyes were also on a key meeting of China's top leadership in Beijing, with hopes for measures to boost the world's number two economy, which grew less than expected in the second quarter according to official data Monday.

China has become a key luxury goods market in recent years and the slow growth plus disappointing results by two firms hammered sentiment in the sector and helped push European stocks lower.

Burberry stock tumbled more than 18 per cent after it announced the immediate departure of chief executive Jonathan Akeroyd as it posted "disappointing" results. 

Patrick Munnelly at Tickmill said Burberry's shares touched a 14-year low and has lost nearly half of its value since the start of year, making it the worst performer on the FTSE 100.

While Burberry's repositioning has made progress, "significant efforts are required to compensate for years of underinvestment in the brand", said Munnelly.

Another heavy blow came as Swatch posted plunging profits owing to the luxury market crisis in China and warning that sales in the key market were likely to remain difficult this year, sending its shares down more than nine per cent. 

In Paris, Gucci owner Kering saw its stock drop more than five per cent and LVMH shed 2.8 per cent in value on the back of concerns for the wider luxury sector.