Major stock markets around the world rallied on Wednesday, while bitcoin hit a record high and the dollar was set for its biggest one-day jump in four years as Donald Trump was elected U.S. president.
Small cap U.S. stocks in particular were boosted by expectations that a Trump presidency would offer tax cuts and support domestic companies.
Though bond investors dumped long-dated Treasuries, betting that accompanying tariff hikes would increase the deficit and inflation, causing the Federal Reserve to cut rates by less than they otherwise would have, and potentially raising fears about the United States' fiscal position.
Trump, 78, recaptured the White House in Tuesday's election following a campaign that deepened the polarization in the country.
U.S. S&P and Nasdaq futures jumped more than 2% ESc1, 1YMc1, and those tracking the small cap Russell 2000 RTYcv1 soared 6%. The dollar index =USD rallied 1.4% and was set for its best day since March 2023.
The rally in U.S. stock futures and signs of a decisive result cheered equity markets, with European shares up 0.9% .STOXX as stock investors put aside worries about the impact of potentially higher tariffs for now.
It was a different story in emerging markets, where Mexico's peso sank to its weakest level in over two years.
"The market is definitely moving in line with the Trump playbook; stocks and small caps, in particular, are higher on the idea that Trump will be good for U.S. companies," said Seema Shah, chief global strategist for Principal Asset Management in London.
"Across emerging markets, you can see China and Europe are struggling with the idea that they could face higher tariffs, and U.S. bond yields higher with expectations for a higher fiscal deficit and inflation."
"A defeat does not mean we're defeated," US President Joe Biden told disappointed Democrats after Donald Trump's election win. He urged Americans to "bring down the temperature."
Mexican President Claudia Sheinbaum congratulated Donald Trump on his election victory, calling for dialogue and respect for sovereignty. She expressed confidence in strong U.S.-Mexico relations and reassured the public despite market instability.
Elon Musk stands to gain from his ties to President-elect Trump, with Tesla shares surging post-election. Trump's policies, including deregulation and tariffs on Chinese imports, could benefit Musk’s businesses, including Tesla and SpaceX.
Trump's Republicans are set to gain control of Congress, pushing an agenda of tax cuts, border security, and deregulation. However, their plan could add trillions to the national debt, challenging their goal of reducing the $35 trillion deficit.
Donald Trump secured a sweeping victory in the 2024 election, defeating Vice President Kamala Harris in a polarizing race. Despite facing multiple criminal charges, Trump’s campaign resonated with voters demanding change, positioning him for a return to the White House on January 20.
The International Criminal Court has issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu and his former defence chief, as well as a Hamas leader, Ibrahim Al-Masri, for alleged war crimes and crimes against humanity, the court said on Thursday.
Former German Chancellor Angela Merkel describes her dealings with world leaders like Russian President Vladimir Putin and Donald Trump during her 16 years in power in her new memoir, which comes as her legacy is under fire in light of today's crises.
Iceland’s Reykjanes Peninsula, active again after 800 years, has seen repeated volcanic eruptions since 2021. From lava fountains to massive fissures, eruptions have reshaped the landscape, attracting tourists while prompting evacuations and safety warnings.
An earthquake measuring 4.6 on the Richter scale struck the Dashtestan district of Bushehr Province in southern Iran at 8:30 a.m. local time today, according to the National Seismology Center of the Institute of Geophysics at Tehran University.
"Come up with the video in its full form," demands the COP29 CEO, Elnur Soltanov, in an exclusive interview with AnewZ. The chief executive has broken his silence on the claims he was using his position to organise potential fossil fuel deals.
The United Nations COP29 climate change conference in Baku seeks $1 trillion annually to help vulnerable nations tackle climate change, as political tensions and Argentina’s withdrawal overshadow talks.
Former German Chancellor Angela Merkel describes her dealings with world leaders like Russian President Vladimir Putin and Donald Trump during her 16 years in power in her new memoir, which comes as her legacy is under fire in light of today's crises.
The United States said it had reopened its embassy in Kyiv late on Wednesday after it had shut for the day due to what it called the threat of a significant air attack, a day after Ukraine used American missiles to hit a target inside Russia.
China's defense minister declined a meeting with U.S. Defense Secretary Lloyd Austin during a meeting of defense leaders in Laos, a move the Pentagon chief said on Wednesday was unfortunate.
Ukraine's President Volodymyr Zelenskiy acknowledged the Crimea peninsula, seized by Russia in 2014, would have to be restored to Ukrainian sovereignty through diplomacy.
The International Criminal Court has issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu and his former defence chief, as well as a Hamas leader, Ibrahim Al-Masri, for alleged war crimes and crimes against humanity, the court said on Thursday.
Former German Chancellor Angela Merkel describes her dealings with world leaders like Russian President Vladimir Putin and Donald Trump during her 16 years in power in her new memoir, which comes as her legacy is under fire in light of today's crises.
Iceland’s Reykjanes Peninsula, active again after 800 years, has seen repeated volcanic eruptions since 2021. From lava fountains to massive fissures, eruptions have reshaped the landscape, attracting tourists while prompting evacuations and safety warnings.
An earthquake measuring 4.6 on the Richter scale struck the Dashtestan district of Bushehr Province in southern Iran at 8:30 a.m. local time today, according to the National Seismology Center of the Institute of Geophysics at Tehran University.
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