Operators of the New York Stock Exchange (AFP / ANGELA WEISS)
Donald Trump’s victory in the US presidential election is pushing up the dollar and the stock markets, with Wall Street expecting a sharp rise.
“The market reaction to Trump’s victory was as expected: largely positive, but with less volatility than in 2016, because this time it was anticipated,” comments Stefan Eppenberger, Head of Strategy investment of Vontobel.
“US stock futures are rising, while European and Chinese markets are reacting cautiously,” he continues.
Less than two hours before the opening of the American markets, the futures contracts of the three main Wall Street indices, which give an indication of trends before the start of the session, are up sharply. The Dow Jones jumped 2.99%, the Nasdaq gained 1.49% and the S&P 500 gained 2.12%.
On the American market, the share of the Tesla group, owned by Elon Musk, rose 12.93% before the market. The title was carried by the support shown by the billionaire for Donald Trump.
In Europe, the London Stock Exchange gained 0.98% around 12:20 GMT, Paris advanced by 0.80% and Frankfurt by 0.38%. All limited their gains compared to the first exchanges of the session. The Milan Stock Exchange even turned around, now dropping 0.14%.
“With the arrival of Donald Trump in the White House, European products could face significant challenges, because” he “has made it clear that he will impose vast customs duties,” explained John Plassard, specialist in investment 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.
– Rates are rising –
On the bond market, where already issued debt is traded, the interest rate on 10-year American government bonds jumped to 4.47% around 12:15 GMT on Wednesday, compared to 4.27% at the close on Tuesday, and that with a two-year maturity rose to 4.27%, compared to 4.18%.
Donald Trump in Milwaukee, Wisconsin (USA), on November 1, 2024 ( AFP / KAMIL KRZACZYNSKI )
This is a sign that the market expects “stronger growth and perhaps higher inflation”, a combination which could “slow down, or even stop”, the rate reductions planned by the American central bank (Fed ), estimated Stephen Dover, director of the Franklin Templeton Institute. The next meeting of Fed officials is Wednesday and Thursday.
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 6.73%, Bank of America 8.52%, Citigroup 8.39%, Goldman Sachs 7.98% and Wells Fargo 9.19%.
– The sought-after dollar –
The dollar is soaring against the majority of other currencies. Around 12:15 GMT, it soared 2.05%, to 1.0710 dollars per euro.
“In Mexico, concern over possible increases in customs tariffs is causing the peso to plunge,” noted analysts at Saxo Bank. The Mexican currency dropped 2.78%, to 20.6695 pesos per dollar.
– Bitcoin at a record high –
The rise of the greenback contributes to lowering the demand for oil, because the latter is exchanged in dollars on the markets.
As a result, around 12:15 GMT, the price of a barrel of Brent from the North Sea lost 1.14%, to $74.67 and its American equivalent, a barrel of West Texas Intermediate (WTI), fell by 1.18%. , at $71.14.
Bitcoin for its part soared by 7.96%, to 74,668.54 dollars, after reaching a new absolute record at 75,371.67 dollars, boosted by the prospect of regulatory relaxation and tax measures favoring the sector of cryptocurrencies under the presidency of Donald Trump.
