Donald Trump’s return to the White House as the projected winner of the 2024 US election has caused significant market movements.
- The dollar has experienced noteworthy gains, rising by 2% against the euro and 1.8% versus the yen, thanks to investor confidence in Trump’s economic policies.
- Stock markets in London have seen a surge, with the FTSE 100 up by 1.3% and the FTSE 250 gaining 1.8%, led by US-facing stocks.
- US financial markets are predicted to continue their upward trend, with S&P 500 and Dow futures indicating over 2% gains as trading commenced.
- Bitcoin has surged to a record high, marking an 8.5% increase, influenced by Trump’s supportive stance towards cryptocurrency.
The re-election of Donald Trump as the projected winner of the 2024 US election has sparked widespread shifts in financial markets worldwide. Investors are responding positively to what they perceive as favourable economic policies, with the dollar’s value climbing significantly. The dollar made substantial gains, appreciating by 2% against the euro and 1.8% against the yen, driven by expectations of high tariffs and increased government spending.
In the UK, the stock markets echoed this optimism with notable surges. The FTSE 100 index rose by 1.3%, while the FTSE 250 climbed 1.8%. These upticks were primarily propelled by companies with significant exposure to the US market. Gains were led by Ashtead, InterContinental Hotels, and Entain, which saw stock increases of 6.8%, 5.7%, and 4.9% respectively.
The anticipation of Trump’s economic strategies has also set the stage for potential growth in the US markets. Indicators suggested gains for the S&P 500 and the Dow, as futures opened with gains exceeding 2%. Such market enthusiasm is underpinned by expectations of future economic growth and fiscal policies.
Bond markets reflected mixed reactions to the election outcome. In the US, treasury yields saw a rise, with 10-year bond yields reaching 4.47%. This increase suggests that investors are preparing for potential fiscal expansion leading to higher growth. However, European bond yields fell due to concerns about economic hindrances from Trump’s policies, prompting central banks to contemplate rate cuts.
Cryptocurrency markets responded enthusiastically to Trump’s return, particularly Bitcoin, which hit an unprecedented $75,060, soaring by 8.5%. His moniker, the ‘Crypto President,’ aptly reflects his favourable stance on digital currencies, boosting investor confidence significantly.
The financial markets have made notable strides in response to Trump’s projected victory, reflecting investor optimism towards his forthcoming administration.
