(BFM Bourse) – The American stock market jumped, in turn reacting to Donald Trump's victory in the American presidential election. The Paris Stock Exchange is now moving downward, below 7,400 points, after opening sharply higher this Wednesday morning.
It is the turn of the American markets to react to the victory of Donald Trump, who will officially return to the White House.
In the first trades this Wednesday afternoon, the main American indices are celebrating. The Dow Jones jumped 3.2% and the S&P 500 gained 1.9%, both opening with session records. The Nasdaq climbs 1.8% while the Russell 2000 jumps 5.2%, since small caps will benefit from the protectionist measures desired by Donald Trump.
For operators, a victory for Donald Trump is considered rather favorable to the stock markets, because the Republican candidate intends to take tax measures favorable to businesses. The businessman plans, for example, to lower corporate tax to 15% compared to 21% at present.
Winners and losers
“Certain sectors should benefit in the short and medium term from the measures of Donald Trump's economic program, in particular that of discretionary consumption (including automobiles and individual construction), energy and technology,” adds Nicolas Bickel, head of investments for private banking activities at Edmond de Rothschild.
Indeed, investors are starting to identify the sectors that will benefit or, on the contrary, suffer from Donald Trump's second term which will begin in January.
Among the winners of the day, the banks are driven by the prospect of deregulation of the sector, or the oil and oil services groups which could also benefit from a proactive policy in terms of domestic energy production. Conversely, renewable energy groups are suffering the blow, due to a risk of unraveling the “inflation reduction act” (IRA), a text which grants preferential treatment to carbon-free energies.
Tesla jumped more than 13%, its leader, Elon Musk, was a fervent support of Donald Trump during the presidential campaign. .Trump Media & Technology Group (TMTG), the company that oversees the businessman's social network “Truth Social”, jumped for its share by 25%.
European markets, for their part, significantly reduced their gains compared to trading this Wednesday morning. The CAC 40, which had gained more than 2% this morning, erased all of its gains and is now moving slightly down 0.2% below 7,400 points to 7,391.07 points, around 3:30 p.m.
Sabrina Sadgui – ©2024 BFM Bourse
