Financial markets are reacting swiftly to political changes in the US.
- The British pound has declined by 1.4% against the US dollar.
- Following Donald Trump’s election victory, US stock futures are experiencing significant gains.
- Treasury yields in the United States have increased due to anticipated fiscal policies.
- Cryptocurrencies witness a surge, with Bitcoin reaching a new record.
The financial landscape has been notably impacted by Donald Trump’s return to the White House. The British pound saw a significant drop, declining 1.4% against the US dollar. This currency movement reflects investor unease amid changing political dynamics and potential economic shifts.
Simultaneously, US and UK stock markets have reacted positively to Trump’s victory. The FTSE 100 in London rose by 1.3%, while the mid-cap FTSE 250 increased by 1.8%. US stock futures, including the S&P 500 and Dow, are also up by over 2%, indicating strong investor confidence in future market stability under Trump’s leadership.
The anticipation of Trump’s economic policies, involving tariffs and increased spending, has influenced treasury yields. In the US, 10-year bond yields have reached a high of 4.47%, reflecting expectations of higher growth. However, European bond yields have fallen due to concerns about potential adverse impacts on growth, leading central banks to reconsider their interest rate strategies.
Cryptocurrency markets have responded enthusiastically, with Bitcoin surging 8.5% to a record high of $75,060. Trump’s reputation as the ‘Crypto President’ and his commitment to prioritising America have boosted confidence in digital currencies.
Financial markets are adjusting to Trump’s election win, with diverse reactions across currencies, stocks, and other assets.
