2 UK shares that could rise if Trump wins the Presidential election

These UK shares are among the FTSE 100’s most popular stocks. And they could rise in value if Donald Trump retakes the White House.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

The flag of the United States of America flying in front of the Capitol building

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Election day in the US is finally here, and the outcome remains on a knife-edge. The results of the Trump-Harris Presidential runoff could have significant short- and long-term consequences, including for UK shares and stocks around the globe.

Here are two FTSE 100 shares that might rise in value if Donald Trump returns to the White House.

BAE Systems

Created with Highcharts 11.4.3BAE Systems PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

Defence businesses like BAE Systems (LSE:BA.) have surged in value since Russia’s 2022 invasion of Ukraine. Arms demand has risen as Western nations restock their arsenals following the end of the Cold War. It’s a trend that’s widely tipped to continue as geopolitical tensions ramp up.

Should you invest £1,000 in Primary Health Properties right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Primary Health Properties made the list?

See the 6 stocks

Defence sector sales could receive an extra shot in the arm if Trump succeeds today, too. Military improvement is one of his stated priorities, including building an ‘Iron Dome’ missile defence system and implementing widescale modernisation.

This could create a windfall for BAE Systems considering its top-tier supplier status to the US. Last year, the firm generated 42% of its revenues from there, making it the company’s single largest market.

But this is not all. A Trump Presidency could also have significant implications for other countries’ defence spending.

Criticising NATO countries for not meeting spending obligations was a hallmark of his last stint as President. And rumours circulate that he’ll demand the defence bloc hike arms-related expenditure to 3% of gross domestic product (GDP) if he wins today, up from 2% at present.

Defence businesses like BAE still face threats like supply chain issues and cost inflation. But, on balance, I think the FTSE company looks in great shape.

Shell

Created with Highcharts 11.4.3Shell Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

If his last stint in the White House is any guide, the oil industry could also be a big beneficiary of a Trump election win. Investing in Shell (LSE:SHEL) could be a good play on this theme.

Between 2016 and 2020, the former President introduced a broad spectrum of measures that boosted fossil fuel producers. He increased the number of drilling leases on federal lands, approved pipeline projects such as Keystone XL, and dialled back environmental legislation to help businesses cut costs.

Trump’s support for the oil sector hasn’t wavered in the intervening years either. On the campaign trail he’s pledged to increase production as part of his ‘America First’ policy.

Shell might be one of the big winners if Trump wins today. It’s one of the world’s biggest oil and gas producers, with operations in 70 countries. And it sources a substantial amount of earnings from the US thanks to its extensive refining operations and upstream assets.

That said, there will still be risks to investing in oil companies, whoever secures the election. The oil market faces a large oversupply as China’s economy cools and new capacity comes on stream. This could keep oil prices on their recent downward path, hitting producers’ revenues.

What’s more, countries are heavily investing in renewable energy to wean themselves off oil and gas, which poses a long-term problem. Though Shell’s own investment in renewables could help limit this danger.

Should you buy Primary Health Properties now?

Don’t make any big decisions yet.

Because Mark Rogers — The Motley Fool UK’s Director of Investing — has revealed 5 Shares for the Future of Energy.

And he believes they could bring spectacular returns over the next decade.

Since the war in Ukraine, nations everywhere are scrambling for energy independence, he says. Meanwhile, they’re hellbent on achieving net zero emissions. No guarantees, but history shows...

When such enormous changes hit a big industry, informed investors can potentially get rich.

So, with his new report, Mark’s aiming to put more investors in this enviable position.

Click the button below to find out how you can get your hands on the full report now, and as a thank you for your interest, we’ll send you one of the five picks — absolutely free!

Grab your FREE Energy recommendation now

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended BAE Systems. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Investing Articles

4 REITs Fools own for passive income

REITs often have higher-than-average dividend yields compared to other stocks, making them a solid choice to consider for passive income…

Read more »

artificial intelligence investing algorithms
Investing Articles

Up 272% in just a year, is Palantir stock just getting started?

This writer recognises that Palantir has grown its business very well -- but does the stock price offer him an…

Read more »

Runner standing at the starting point with 2025 year for starting in new year 2025 to achieve business planing and success concept.
Investing Articles

Up 50%? The Aston Martin share price forecast is mind-blowing! 

If analysts are right, the Aston Aston Martin share price could absolutely rocket in the year ahead. Harvey Jones says…

Read more »

Investing Articles

As the S&P 500 drops, here are 2 Stocks and Shares ISA holdings I’m watching

Our writer has different views on how President Trump's tariffs might affect these two US holdings in his Stocks and…

Read more »

Surprised Black girl holding teddy bear toy on Christmas
Investing Articles

£10,000 invested in Tesla stock at Christmas is now worth…

Tesla stock has been one of best-performing investments of the past decade. But things haven't gone to plan for investors…

Read more »

Investing Articles

Up 279% in 5 years, could Meta stock keep soaring?

Meta stock has more than tripled in five years. This writer sees lots to like about the business but also…

Read more »

Pink 3D image of the numbers '2025' growing in size
Investing Articles

25% total return in a year? Is now the perfect time to buy BP shares?

BP shares are on the front line of today's global economic and political uncertainty but analysts think they can still…

Read more »

Affectionate Asian senior mother and daughter using smartphone together at home, smiling joyfully
Investing Articles

With Cash ISA changes coming, could now be the time to consider buying shares?

Changes to the Cash ISA could lead to greater investment in the stock market. This could be a good thing…

Read more »