Operators of the New York Stock Exchange (AFP / ANGELA WEISS)
Donald Trump's victory in the US presidential election sent global markets into a tailspin on Wednesday, sending the dollar, bitcoin, US stocks and rates soaring as Wall Street finished at record highs.
The American market closed with fanfare, delighted by Donald Trump's victory in the American presidential election, which propelled its three star indices to new records.
The Dow Jones at 3.57%, the Nasdaq index at 2.95% and the S&P 500 index at 2.53%.
“The market is in full turmoil after this clear victory,” commented Aaron Clark of GW&K Investment Management to AFP.
Investors showed their “optimism regarding growth prospects after Donald Trump's victory”, underlined Patrick O'Hare of Briefing.com, in a note.
Wall Street “is enthusiastic” about the idea that “less regulation, lower tax rates, and a business-friendly environment (…) will boost sales and profitability,” said Jose. Torres of Interactive Brokers.
The election of the Republican candidate propelled a certain number of assets, such as the action of the Tesla group (+14.75%), owned by Elon Musk, active support of Trump. After a strong start, Donald Trump's media group, Trump media and Technology Group, finally climbed 5.94%.
American oil stocks also gained ground when groups specializing in renewable energies declined.
In Europe, Frankfurt (-1.13%), Milan (-1.54%) and London (-0.07%) finished in the red after a complete reversal of the trend. The CAC 40 in Paris even briefly jumped by more than 2% at the start of the session before ending down 0.51%.
Investors were initially relieved by the “removal of uncertainty” with a clear election result, said Christophe Boucher, investment director at ABN AMRO Investment Solutions.
But the European markets are now realizing that if the Republican's program is implemented, “it could be devastating for Europe, with risks to growth and inflation”, underlines Lionel Melka, manager at Swann Capital interviewed by the 'AFP.
The next president wants to increase import taxes to between 10 and 20% for all products entering the United States, and up to 60% for those coming from China, or even 200% for certain types of goods.
– Soaring rates –
On the bond market, the interest rate on 10-year US government bonds jumped to 4.43%, compared to 4.27% at the close on Tuesday, and that with a two-year maturity rose to 4.26 %, compared to 4.18%.
Donald Trump in Milwaukee, Wisconsin (USA), on November 1, 2024 ( AFP / KAMIL KRZACZYNSKI )
The shares of American banks are particularly celebrating, driven by the surge in borrowing rates. JPMorgan Chase (+11.64%), Goldman Sachs (+13.10%), Bank of America (+8.54%) and Wells Fargo (+13.35%) all took off.
This is a sign that “investors are preparing for a scenario in which the Federal Reserve (Fed) could be required to relaunch its fight against inflation,” explains Ricardo Evangelista, analyst at ActivTrades. In other words, it could slow down its rate reduction pace, or even pause the cycle.
The Fed's monetary policy meeting began on Wednesday and concludes on Thursday.
– The dollar in orbit –
The dollar soared on Wednesday, with currency traders seeing it ideally positioned to benefit from a new mandate from Donald Trump, winner of the American presidential election.
Around 8:40 p.m. GMT, the greenback climbed 1.81% against the single currency, to 1.0735 dollars per euro. Earlier, it went as high as $1.0683, a first in more than four months.
It also recorded a one-year high against the Norwegian krone and an all-time high against the Indian rupee.
“In Mexico, concern over possible increases in customs tariffs is causing the peso to plunge,” analysts at Saxo Bank also noted.
– Bitcoin's all-time high –
Bitcoin surpassed the $75,000 mark for the very first time on Wednesday, boosted by the prospect of regulatory relaxation and tax measures favoring the cryptocurrency sector under the presidency of Donald Trump.
Around 9:20 p.m. GMT, the first digital currency gained 9.59%, to $76,037.56.
– Concerns about raw materials –
The return of Donald Trump to the White House also revives concerns for American soybeans, whose prices fell on Wednesday, in an uncertain market facing a potential escalation of trade tensions with China, the main destination for American oilseeds.
Oil prices limited their losses after a drop on Wednesday caused by the impressive rise of the dollar after the election of Donald Trump.
The price of a barrel of Brent from the North Sea for delivery in January lost 0.81% to $74.92. Its American equivalent, a barrel of West Texas Intermediate (WTI), for delivery in December, dropped 0.42%, to $71.69.
Earlier in the day, Brent and WTI had slipped to $73.34 and $69.74, respectively.
