NEW YORK – Global markets surged following the announcement that Donald Trump would be declared the 47th President of the United States, sending the U.S. dollar (USD), Bitcoin, U.S. stock futures, and Treasury notes to recent record highs.
Financial analysts suggest that markets are pricing in expectations that Trump will implement looser fiscal policies, including tax cuts, alongside protectionist measures like tariffs. These factors are contributing to the upbeat market sentiment across multiple asset classes.
USD Soars to Four-Month Highs
The foreign exchange (FX) market saw the most significant movement, with the USD climbing to a four-month high. The U.S. Dollar Index, which tracks the dollar against a basket of major currencies, jumped to 104.97 at 12:14 UTC+2.
Currencies from developing markets, as well as the euro and Chinese yuan, experienced notable declines, weighed down by concerns over Trump’s “America First” policies and the potential for new trade tariffs. On Wednesday, the euro suffered its largest drop since the COVID-19 crisis, falling by more than 1.75% to $1.0740.
Europe is particularly on edge following Trump’s October comment, “To me, the most beautiful word in the dictionary is ‘tariff,’” fueling fears of escalating trade tensions between the U.S., China, and Europe. Analysts warn that a fresh wave of tariffs could place additional economic strain on the continent.
Bitcoin Hits Record Highs
In the cryptocurrency market, Bitcoin surged by 8.6% on Wednesday morning, reaching an all-time high of $75,389. The rally is being driven by expectations that a Trump administration may be more favorable toward cryptocurrencies compared to his Democratic counterpart, Vice President Kamala Harris.
U.S. Stock Futures and Treasury Notes Rise
U.S. stock futures also surged to record levels, buoyed by investor optimism over lower taxes and higher interest rates under a Trump administration. According to Reuters, the anticipation of pro-business policies contributed to the bullish sentiment.
Additionally, U.S. Treasury yields climbed, with the 10-year Treasury note reaching a four-month high, reflecting the growing confidence in the market.
Across the Atlantic, the Athens Stock Exchange General Index saw a notable jump, with shares tied to the U.S. market benefiting from the news of Trump’s victory.
Global Market Impact
The widespread market rally underscores a growing belief that Trump’s policies will benefit the global economy, particularly in the short term, although concerns remain over the long-term effects of potential trade wars and protectionist measures. Investors are closely watching how the incoming administration will navigate these challenges in the coming months.
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