Donald Trump’s recent victory in the US presidential election has prompted an immediate reaction in financial markets. Investors expect the former president’s policies, similar to those of his first term, to further stimulate the US economy. The promises of tax cuts, deregulation and tariffs seem designed to boost growth and improve corporate profits, especially US ones.
Wall Street prepared to celebrate Trump’s victory, as shown by US futures. The S&P 500 index recorded an increase of 1.5%. European markets also benefited from the news, with London increasing 0.86%, Paris gaining 1% and Frankfurt 0.8%. Milan saw a similar increase with a +0.85%. However, not all stock markets posted gains. In Asia, Chinese markets suffered losses due to concerns over trade tariffs. Tokyo, on the other hand, benefited from the weakening of the yen against the US dollar.
The US dollar showed remarkable strength, marking its biggest gain since 2020. Trump’s victory caused the euro to fall 1.8% to $1.0732. US government bonds fell sharply, sending benchmark yields up more than 0.1 percentage points, as investors feared a rise in inflation from the planned policies. In addition, Trump’s promise of deregulation pushed Bitcoin to a new all-time high with an increase of 6%, reaching $73,800. On the contrary, the price of oil decreased: West Texas Intermediate (WTI) fell by 1.1%, while Brent from the North Sea recorded the same decrease.
As Trump’s new presidential term begins and economic policies announced by Trump take shape, experts will continue to closely monitor market developments. The future direction of fiscal and trade policies will have a significant impact not only on the U.S. economy but also on the global economy. Investors will need to remain vigilant in this evolving environment and prepare for any challenges that may arise in the near term.
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