The Trump effect: Global stock markets surge while Bitcoin jumps to a record high as The Donald claims election victory
Global stock markets and the dollar surged this morning as Donald Trump claimed victory in the US presidential election.
Global stock markets and the dollar surged this morning as Donald Trump claimed victory in the US presidential election.
Bitcoin also jumped to a record high as Fox News projected the Republican nominee had won the presidency, defeating Kamala Harris.
Meanwhile Londons stock market rose 0.9 per cent, Paris climbed 1.0 percent and Frankfurt advanced 0.8 percent as they rallied at the start of trading this morning.
Analysts generally assume Trumps plans for restricted immigration, tax cuts and sweeping tariffs if enacted would put more upward pressure on inflation and bond yields, than Democrat Harriss policies.
This morning US Treasury yields shot to four-month highs and the dollar surged - putting it on track for its best one-day gain in over two years - while U.S. equity futures were up almost 2 per cent.
Trump went on to paint a positive vision for the next four years under his control
Women pass by a display board showing Chinese stock market movements on the US presidential election day in Beijing
Trump was joined on stage by family - including daughter Ivanka and son-in-law Jared Kushner who had been absent from the campaign - aides and political supporters
A monitor displays the Nikkei Stock Average at a foreign exchange brokerage in Tokyo on November 6
In early European trade, concern that higher tariffs under a Trump presidency could deal the regions economy a fresh blow pushed the euro down 1.7 per cent to $1.074.
While euro zone government bond yields fell sharply with German two-year bond yields down 10 basis points at 2.19 per cent.
Money markets priced in lower European Central Bank rates meanwhile.
For European businesses, Trumps return to the White House would mean considerable trade policy and geopolitical uncertainty, with negative implications for growth on the continent, said Berenberg chief economist Holger Schmieding.
Euro zone stock futures however rose sharply, tracking their U.S. peers.
Japans Nikkei surged over 2.5 per cent as the yen slid, while MSCIs broadest index of Asia-Pacific shares outside Japan eased 0.9 per cent.
While markets were still confident the Federal Reserve will cut interest rates by 25 basis points on Thursday, futures for next year eased into the red with December down 9 ticks.
Yields on 10-year Treasury notes jumped to a four-month high of around 4.47 per cent, from 4.279 per cent, breaking last weeks top of 4.388 per cent. Two-year yields climbed to 4.31 per cent, from 4.189 per cent late in New York.
If we look at the long end of the curve, that reflects the fact that both candidates are not exactly fiscal conservatives, theyre both willing to use the fiscal printing press, said Arnim Holzer, global macro strategist at Easterly EAB Risk Solutions.
In currency markets, the dollar index surged 1.5 per cent to 104.97 , the biggest daily rise since early 2023.
The euro slid 1.7 per cent to $1.0744, falling back from a one-month top of $1.0937 struck overnight.
The dollar jumped 1.5 per cent on the Japanese yen to 153.89 yen , and further away from a low of 151.34.
Bitcoin climbed to a record high of $75,397 and was last up 7 per cent on the day. Trump is seen as more actively supportive of cryptocurrencies than Harris.
The dollar gained 1.0 per cent on the offshore yuan to 7.1726 yuan, sparking reports Chinese banks were selling dollars to slow the yuans decline.
China is seen on the front line of tariff risk, and its currency in particular is trading on tenterhooks with implied volatility against the dollar around record highs.
Chinese stock markets have surged to almost one-month highs as investors expect a meeting of top policymakers in Beijing this week to approve local government debt refinancing and spending. Chinese blue chips lost early gains to turn flat.
Supporters of former US president and Republican presidential candidate Donald Trump cheers near his Mar-a-Lago resort in Palm Beach
Nervous excitement gave way to joy at the Trump watching party as Tuesday evening turned to morning
Gold prices were choppy with a dip of 0.3 per cent to $2,734 an ounce, off a recent record peak of 2,790.15.
The sharp rise in the dollar pressured oil prices, and other commodities, as it makes them more expensive when buying in other currencies.
U.S. crude shed 1.35 per cent to $71.03 per barrel, while Brent fell 1.4 per cent to $74.47.
