As Trump Wins the US Election, US Stocks & Dollar Rise – Europe Market Wrap
Donald Trump’s victory in the US presidential election sent shockwaves across global markets, as traders braced for drastic policy and economic changes under the new administration.
Trump’s electoral return spurred a rally in risk markets, with 30-year Treasury rates and the currency rising to its highest levels since 2020. S&P 500 futures rose 2.3%, as Bitcoin reached a new high. Tesla, co-founded by Trump’s greatest supporter, Elon Musk, rose 15% in premarket trade.
From London to Shanghai, investors worldwide faced with the far-reaching consequences of a Trump presidency, which is anticipated to impose heavy taxes on imported goods, exacerbate trade tensions with China, and put pressure on Europe to increase defence expenditure. The Mexican peso plunged the most in three months, while the Euro led losses among Group-of-10 currencies.
Equities also reflected predictions that Trump will ease financial regulations, embrace cryptocurrency, and help fossil fuel producers. JPMorgan and BofA stocks rose in early trading.
