Image credits- Business Today
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Global financial markets reacted sharply to the news of Donald Trump’s victory in the 2024 US presidential election. The dollar surged, major stock indexes gained ground, and cryptocurrencies saw record-breaking prices as investors adjusted their positions to account for potential changes in economic and fiscal policy under a second Trump administration.
Stock Market Reactions:
- The FTSE 100 index, which tracks the largest companies in the UK, rose 1% by Wednesday afternoon, reflecting positive sentiment in European markets.
- In Japan, the Nikkei 225 index climbed 2.6%, benefiting from the US election result and optimism about future economic policies.
- The ASX 200 in Australia closed 0.8% higher, following global market trends.
- In mainland China, the Shanghai Composite index ended the day 0.1% lower, while Hong Kong’s Hang Seng index fell 2.23%, reflecting regional uncertainty.
Currency Movements:
- The US dollar surged by 1.4% against a basket of major currencies, including the euro, pound, and Japanese yen, as investors piled into the dollar on expectations of higher inflation and more aggressive fiscal policies under Trump’s presidency.
- The pound fell by 1.41% against the US dollar to its lowest level since August, while the euro dived 2.24% to its lowest point since June, reflecting concerns over potential US trade policy shifts.
Cryptocurrency Surge:
- In the cryptocurrency market, Bitcoin prices surged nearly 8% to a new record high of $75,345.00 in early trading, before dipping slightly to around $73,500. This surge in Bitcoin prices highlights investor optimism that the second Trump administration may be favorable to the volatile sector, with potential tax cuts and inflationary pressures boosting demand for digital assets.
US Stock Markets:
- The major US stock indexes are expected to open higher when trading resumes, as investors bet on policies aimed at stimulating the economy, including tax cuts and tariff increases. This comes amid speculation that these policies could push inflation higher and reduce the pace of interest rate cuts by the Federal Reserve.
Summary of Key Movements:
- FTSE 100: +1%
- Nikkei 225: +2.6%
- ASX 200: +0.8%
- US dollar: +1.4% against major currencies
- Bitcoin: +8%, reaching $75,345
- Pound: -1.41%
- Euro: -2.24%
- Shanghai Composite: -0.1%
- Hang Seng: -2.23%
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Stock and cryptocurrency prices are subject to fluctuations and volatility. Investors should do their own research or consult with a financial advisor before making any investment decisions.