JSo far, the market reaction is probably in line with what would be expected given the results”, notes Jim Reid, economist at Deutsche Bank, as Donald Trump claimed victory in the US presidential election
The dollar is climbing against the majority of other currencies. The dollar has not experienced such a jump against the euro since March 2020, soaring 1.72% to 1.074 dollars per euro around 8:30 a.m. GMT.
“In Mexico, concern over possible customs tariff increases causes the peso to plunge”, comment Saxo Bank analysts. The Mexican currency dropped 2.22% to 20.57 pesos per dollar.
On the bond market, where debt already issued is traded, the interest rate on 10-year US government bonds jumped around 8:30 a.m. GMT, to 4.40% compared to 4.27% at close the day before. , and that with a maturity of two years rose to 4.23%, against 4.18%.
This is a sign that the market is expecting a “stronger growth and perhaps higher inflation”, a combination that could “slow down, or even stop, the rate reductions planned by the American central bank (Fed)”comments Stephen Dover, director of the Franklin Templeton Institute.
Bitcoin soared 5.52% to $72,984, after having exceeded the $75,000 mark earlier and for the very first time, boosted by the prospect of regulatory relaxation in the event of Donald Trump’s definitive victory. .
Wall Street is headed for a sharply higher open, according to stock index futures, which provide an indication of trends before the session begins.
Around 8:30 a.m. GMT, the Dow Jones rose 2.24%, the broader S&P 500 index rose 2.00%, while the Nasdaq of technology stocks gained 1.65%, according to these futures contracts.
On the European stock markets, the indices are up sharply since the opening: the Paris Stock Exchange jumped by 2.14%, Frankfurt by 1.45%, Milan by 1.12% and London by 1.49% .
“A little surprisingly, it must be admitted”, European markets “are holding up rather well, for the moment, in the face of this indisputable victory of Donald Trump”, wrote Alexandre Baradez, head of market analysis at IG France, shortly before the markets opened.
For good reason, “With the arrival of Donald Trump in the White House, European products could face significant challenges, as the president has made it clear that he will impose broad tariffs, potentially ranging from 10% on all imports to much higher levels in countries like China”, explains John Plassard, investment specialist for Mirabaud.
