Donald Trump won victory in crucial North Carolina on Tuesday, successfully defending Kamala Harris’ efforts to win the state and expand its course to secure 270 electoral votes.
The former Republican president visited the state during the last three days of the campaign to prevent Harris from winning this important state.
Trump’s success in North Carolina follows his previous victories in 2016 and 2020, despite significant Democratic campaign investments, door-to-door communication, and Harris public rallies aimed at changing the historical pattern. Trump received 51.1 percent of the vote while Kamala Harris received 47.7 percent of the vote in the state.
It is known that President Trump does not believe in the theory of global warming and the need to reduce oil consumption. Therefore, after winning the election, as well as the Republicans gaining a majority in the US Senate, the country’s biofuel subsidy programs may be curtailed. In addition, Trump plans to impose tariffs on imports of goods from the European Union, which will increase pressure on fuel prices that Europe provides to the United States.
In recent months, the United States has been actively importing biodiesel, and shipments have doubled since 2022. Most biofuels were purchased from the EU because of the attractive prices. Germany produces far more biodiesel than any other EU country, so the supply of biofuel to the United States is very important to it. Thus, in February 2024, Germany accounted for 58% of biodiesel imported into the United States, although the volume of supply subsequently decreased.
Despite active imports and increased competition from renewable fuels, U.S. biodiesel production in 2023 increased 5% to 5.6 million tons compared to the previous year, and its consumption was the highest since 2017.
The repercussions of Trump victory on the global economy and financial markets
The US presidential election is over, with Donald Trump now asserting that he is leading the attack to the White House against his victory over Kamala Harris.
However, this distant political battle may have closer financial repercussions for us here. Apart from the geopolitical significance of the outcome, it may also affect your portfolio.
Some economists predict that Trump’s victory could lead to lower US GDP and higher inflation due to his policies on increasing import tariffs and curbing immigration, according to reports in the Mirror.
Paul Deals of Capital Economics told Eye that the US Federal Reserve funds rate is likely to be 0.5 percentage point higher. “This would put some upward pressure on UK bond yields and mean mortgage rates for UK households are slightly higher than they used to be. A more inflationary global environment could mean that the Bank of England may cut interest rates by less than in the past.”
Thus, if the Bank of England is less aggressive in lowering rates, mortgage rates in the UK may remain high for a long time. Bill Hunt Investment Bank has released a note discussing the potential impact of the US election on UK stock and corporate markets.
This matters to many people in the UK who own shares directly, through an individual savings account, or through pensions invested in shares. The repercussions for negatively affected companies can also affect jobs and wages. According to Paul, candidates’ policies have “far-reaching consequences for the global economy and financial markets.”
The memo from Charles Hall, head of research, Alexander Patterson, head of transport research, and Pickering, chief economist, adds: “Overall, both pose downside risks.”
Expectations of a rate cut in November and its impact on mortgage after Trump’s victory
At tomorrow’s policy meeting on November 7, the central bank is expected to cut interest rates by 0.25%. The central bank’s first 0.5% cut was in September.
Home buyers watched mortgage prices rise during the two-year rate hike drive to reduce inflation. Many hoped to rest when the central bank finally started cutting interest rates in September. However, mortgage rates have been volatile over the past couple of months. After initially falling, it is now back in the rally again.
The average fixed mortgage interest rate for 30 years is 6.90% today, up 0.04% from seven days ago. The average price of a 15-year fixed mortgage is 6.16%, a decrease of -0.01% compared to last week. According to Paul, candidates’ policies have “far-reaching consequences for the global economy and financial markets.”
Many factors contribute to upward pressure on prices: strong economic data, uncertainty surrounding the presidential election and evolving geopolitical risks. Future Fed rate cuts, coupled with low inflation and reduced economic instability, create risks for financial markets That would allow mortgage prices to fall. But the road ahead will be bumpy and long, especially if the economic data received are positive or even mixed.
Check out our weekly mortgage forecast for a more in-depth look at what’s coming from the Fed’s rate cuts, business data and inflation.
The Fed is cutting interest rates this month, which could help lower mortgage rates. To get the lowest price, compare offers from different lenders. Enter your information below to get a custom quote from one of CNET’s partner lenders.
