SINGAPORE, July 14 (Reuters) - Saturday's shooting at

U.S. former President Donald Trump's election rally raises his

odds of winning back the White House, and trades betting on his

victory will increase this coming week, investors said on

Sunday.

Trump was shot in the ear during the rally in Pennsylvania

on Saturday in what the authorities were treating as an

assassination attempt. Trump, his face spattered with blood,

pumped his fist moments after the attack and his campaign said

he was fine after the incident.

Before the shooting, markets had reacted to the prospect of

a Trump presidency by pushing the dollar higher and positioning

for a steeper U.S. Treasury yield curve, and those trades could

strengthen in the coming week, said Rong Ren Goh, a portfolio

manager in the fixed income team at Eastspring Investments in

Singapore.

The first shooting of a U.S. president or major party

candidate since a 1981 assassination attempt on Republican

President Ronald Reagan could upend the Nov. 5 rematch between

Republican Trump and President Joe Biden, a Democrat, which has

been tight in opinion polls.

"From memory, Reagan went up 22 points in the polls after

his assassination attempt. The election is likely to be a

landslide. This probably reduces uncertainty," said Nick Ferres,

chief investment officer at Vantage Point Asset Management.

World leaders and U.S. politicians condemned the shooting,

while some industry executives, including Tesla chief

Elon Musk, declared their support for Trump.

Since a shaky performance against Trump in a presidential

debate two weeks ago, Biden has faced growing doubts from

donors, supporters and fellow Democrats about his ability to

beat Trump and keep up with the demands of the job.

Immigration and economy have been the main issues for U.S.

voters and, according to Reuters/Ipsos polls, they see Trump as

the better candidate for the economy, even as Biden's White

House seeks to benefit from a solid economy with inflation

slowing and unemployment low.

Under Trump, market analysts expect a more hawkish trade

policy, less regulation and looser climate change regulations.

Investors also expect an extension of corporate and personal

tax cuts expiring next year, fuelling concerns about rising

budget deficits under Trump.

Trump said in an interview in February he would not

re-appoint Federal Reserve Chair Jerome Powell, whose second

four-year term as chair will expire in 2026.

Longer-end Treasury yields have risen

alongside the odds of a second Trump administration.

While the moves in the still-inverted Treasury curve have

primarily been driven by changing expectations about the Fed's

first rate cut in this cycle, the gap between 2-year and 30-year

notes has narrowed to a negative 6 basis points

from a negative 30 bps around the time of the Biden-Trump

debate.

The more closely watched gap between two- and 10-year

Treasury yields is at a negative 27 basis points,

half the levels three weeks ago.

"Trump has always been more 'pro-market'. The key issue

looking forward is whether fiscal policy remains irresponsibly

loose and the implication that might have for (renewed)

inflation and the future path of interest rates," said Ferres.

Stock prices have been rising. Both the S&P 500 and

Dow Jones Industrial Average indexes hit record highs on

Friday and the S&P 500 is up 18% this year.

"Around the five presidential elections of the last 20

years, CEO confidence, consumer sentiment, and particularly

small business optimism have shifted more favorably in response

to Republican victories than Democratic victories," analysts at

Goldman Sachs wrote.

"To the extent improved sentiment leads to an increase in

spending and investment, a Trump victory could boost the

earnings outlooks for some firms even without substantial policy

changes."

Soon after the shooting, billionaire hedge fund manager Bill

Ackman endorsed Trump. Musk also endorsed Trump, calling him

"tough" on his social media platform X.