A potential second term for Joe Biden as President could bring excitement for several German stocks.
In the upcoming US Presidential election, the race is between Democrat Joe Biden and Republican Donald Trump. While the election results and their impact on the economy and stock markets will not be known until November, experts predict that a second term for Joe Biden could be beneficial for German stocks, particularly those in the renewable energy sector and the auto industry.
Renewable Energy Sector
A second term for Joe Biden could boost demand for German companies specializing in renewable energy. For instance, Nordex, a German wind turbine manufacturer, has seen substantial order growth and is expanding cooperation in Germany. Its strong market position in wind energy aligns with Biden’s push for clean energy, likely boosting demand and stock performance.
Companies involved in lithium-ion batteries, green hydrogen production, and long-duration storage are also poised to benefit. The German government's target of 10 GW hydrogen capacity by 2030 combined with Biden’s green hydrogen emphasis could create sizable new markets.
The solar industry in Germany faces volatility due to oversupply and falling prices, but hybrid solar-plus-storage projects are growing. Companies focussing on solar and battery storage integration could gain from increased US-EU collaboration under a Biden presidency.
Other renewable players within indices like the RENIXX World, which include companies from wind, solar, hydropower, bioenergy, and fuel cells, could also see advantages due to increased US-EU green collaboration.
Auto Industry
While specific German auto stocks are not named in the search results, Biden’s clean energy agenda strongly supports electric vehicle (EV) adoption and infrastructure. German automotive giants with electric vehicle investments, such as Volkswagen, BMW, and Daimler, would likely benefit indirectly.
Biden’s political environment encourages incentives for EVs and stricter emissions standards, benefiting German automakers advancing EV technology and production. The big sales of electric cars in the US are expected to occur around 2030 due to new emission standards, but a second term for Joe Biden would still bring more planning security and perhaps rising stock prices for automakers.
Summary
If Joe Biden wins re-election as US President, German stocks in the renewable energy sector and the auto industry could benefit from continued strong transatlantic focus on clean energy, green infrastructure, and electric vehicles. The degree of benefit depends on Biden's ability to pass legislation supporting renewable energy, EV incentives, and green infrastructure funding.
German companies specializing in wind turbines (Nordex), hybrid solar storage, and hydrogen technologies appear best positioned. While specific German auto stocks are not mentioned in the search results, Biden’s policies clearly favor EV producers, including major German automakers by extension.
Investing in German companies specializing in renewable energy, such as Nordex and those involved in lithium-ion batteries, green hydrogen production, and long-duration storage, could be advantageous if Joe Biden wins a second term as US President. The strong market position of these companies aligns with Biden’s push for clean energy, which may boost demand and stock performance.
German automotive giants with electric vehicle investments, like Volkswagen, BMW, and Daimler, could indirectly benefit from Biden’s clean energy agenda and policies that encourage incentives for EVs and stricter emissions standards. Investing in these companies might lead to increased sales of electric cars in the US and potential rising stock prices.
The general news and politics surrounding a second term for Joe Biden could have broader implications for German stocks, particularly those in the renewable energy sector and the auto industry. A continued focus on clean energy, green infrastructure, and electric vehicles at the international level, especially US-EU collaboration, could bring more opportunities and advantages for these companies.
