Investors are preparing for Donald Trump’s potential second term in office, as he faces Joe Biden in the US election.

The five global marketplaces’ hot spots include trade tensions, which could impact global financial markets.

The EU is concerned that Trump may reinstate tariffs on steel and aluminum imports, focus on autos, or reverse EU restrictions on tech companies in the US.

Trump’s announcement of imposing 60% tariffs on Chinese exports could reduce China’s GDP by as much as 0.7%. Biden’s focus on renewable energy could weaken the dollar, increase inflation, and result in higher bond yields and lower investment.

The number of euro/dollar options expiring the day after an election is nearly four times greater than typical, indicating higher volatility in currency markets.

A potential Trump comeback may intensify the need for Europe to develop more robust military capabilities, leading to a surge in defense stock values.