US stock indices, dollar, bitcoin surge as Trump declares election victory
Republican Donald Trump claimed victory in the 2024 presidential election with projections that Republicans are to take back the Senate.
Trump thanked the American people for extraordinary honor of being elected as the US 47th President after he has served as 45th president during 2017/2021.
He added that America has given them an unprecedented and powerful mandate.
Immediate market reaction showed that global investors were increasingly pricing in a victory of economy and business-oriented Trump.
The dollar index spiked to the highest in three months, advancing around 1% on news of Trump election win, while gaining 1.8% against Japanese yen, 1.3% vs the British pound and 1.8% against the Euro.
US stock indexes were among the biggest gainers on election results, with S&P 500 gaining 2.2%in early Wednesday, Dow Jones rose by 2.6% and Nasdaq being up 1.3%.
Bitcoin was top winner of Trump victory news, advancing around 9% overnight and hitting new record high and signaling continuation of larger uptrend after a shallow correction.
Gold reacted negatively in immediate response to the news, pressured by stronger dollar, but remains above psychological $2700 support for the time being, as safe haven demand remains strong on geopolitical tensions and weak global economic outlook.
Crude oil prices edged lower in early Wednesday trading, with WTI contract being down 2.5% and Brent price easing by 2%.
However, oil price is likely to remain supported on Trump’s plans to increase US oil production by starting exploration in Arctic area.
Overall, market reaction was in line with expectations and more direction signals to be expected after the markets digest the news, while investors turn focus on Fed and BOE’s rate decision and look for more signals about Fed’s monetary policy trajectory.