The financial markets are celebrating on Wednesday after Donald Trump managed to win the keys to the White House for the second time.
In New York, early this morning, the Dow Jones already showed a rise of 1,300 points in electronic transactions. Which suggests a strong opening of the markets from 9:30 a.m. on Wall Street.
The stock of Trump Media & Technology Group (TMTG), which notably includes its social network Truth Social, gained more than 50%.
That of Tesla, owned by Elon Musk, appreciated by 13%.
Bitcoin, for its part, had a record value of $75,000.
So far, markets are following the same scenario as in 2016 during Trump’s victory: stocks are rallying, while long-term US Treasury bonds are being sold off in anticipation of a fiscal expansion
commented Gordon Shannon, portfolio manager at TwentyFour Asset Management.
Market attention should subsequently focus on the inflationary consequences of customs tariffs and the reduction in immigration
he continued.
On the bond market, where debt already issued is traded, the interest rate on 10-year American government bonds jumped to 4.44% on Wednesday morning, compared to 4.27% at the close on Tuesday, and that at maturity two years rose to 4.26%, compared to 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), underlined Stephen Dover, director of the Franklin Templeton Institute. The next meeting of Fed officials will be held Wednesday and Thursday.
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The headquarters of the New York Stock Exchange, on Wall Street.
Photo : Associated Press / Peter Morgan
On Wall Street, in electronic trading before the opening of the New York Stock Exchange, shares of American banks were up sharply, driven by soaring borrowing rates. JP Morgan jumped 6.63%, Bank of America 7.93%, Citigroup 8.21%, Goldman Sachs 7.01% and Wells Fargo 8.62%.
The dollar is soaring against the majority of other currencies. Wednesday morning, it gained 1.66%. The Dollar Index, which compares the greenback to a basket of currencies, reached a peak since the beginning of July, at 105.311 points.
In Mexico, concern over possible customs tariff increases causes the peso to plunge
noted Saxo Bank analysts. The Mexican currency dropped 2.68%, to 20.6535 pesos per dollar.
Bitcoin, for its part, reached a new absolute record at $75,371.67, boosted by the prospect under the presidency of Donald Trump of regulatory relaxation and tax measures favoring the cryptocurrency sector.
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 6:55 a.m. Eastern Standard Time, the Dow Jones gained 2.95%, the broader S&P 500 index gained 2.30%, while the Nasdaq gained 1.76%, according to these futures contracts.
On the American stock market, the action of the Tesla group, owned by Elon Musk, rose by almost 15% in trading preceding the opening of the New York Stock Exchange. The title was carried by the support shown by the billionaire for Donald Trump.
Pending the nomination of the Trump cabinet
Few details have filtered out on the composition of the future Trump administration, with one notable exception: the Republican declared that he would entrust responsibility for a large audit of the American state to Elon Musk, who spent more than 110 million dollars of his fortune for Donald Trump’s electoral campaign.
On the European stock markets, the indices are on the rise. Around 6:55 a.m. (Eastern Standard Time), the Paris Stock Exchange jumped 1.39%, London 1.25%, Frankfurt gained 0.84% and Milan 0.62%.
This reaction is surprising and counterintuitive with the return of Trump
noted Alexandre Baradez, head of market analysis at IG France.
With the arrival of Donald Trump in the White House, European products could face significant challenges
because he has clearly indicated that it would impose vast customs duties
explained John Plassard, investment specialist for Mirabaud.
The Republican wants to increase them 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.
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