Deutsche Bank: SpaceX's first public offering will attract a large amount of capital inflow and further support the trend of the US dollar.

A recent analysis report released by Deutsche Bank showed that the upcoming initial public offering (IPO) of the American company SpaceX is expected to attract a huge influx of international capital into the United States. It is projected that on a single trading day, the IPO could provide refinancing equivalent to 8% of the US quarterly current account deficit, providing strong support for the US dollar, especially against the euro. According to calculations by the Currency Strategy Director of Deutsche Bank, Volker Mall, the planned IPO of SpaceX aims to raise $750 billion with a valuation of $1.75 trillion. As international investors typically hold around 20% of US stocks and half of them are European, overseas funds tend to participate more in IPOs of tech giants as European markets lack similar tech alternatives. The analysis predicts that on the launch day of the IPO this Friday, at least $15 billion of overseas capital will flow into the US market. The report compares this capital inflow with US macroeconomic data. The data shows that the US current account deficit reached $190.7 billion last quarter, meaning that the daily foreign capital inflow attracted by SpaceX is enough to cover 8% of the US quarterly current account deficit refinancing needs. Mall explicitly points out that if half of the above-mentioned cross-border capital comes from Europe, it will directly benefit the US dollar, causing it to strengthen against the euro. The Deutsche Bank strategy team emphasizes that the current IPO frenzy, represented by artificial intelligence and high technology, not only supports the US economy at a micro level but also provides significant support for US dollar liquidity at a macro level. As more SpaceX stocks are released to the market after the lock-up period ends, and with artificial intelligence companies like Anthropic and OpenAI signaling clear intentions to go public, the trend of international capital flowing into US entities and financial markets is expected to continue in the coming months.