Bets on 'Trump 2.0' winners and losers whip up markets
Dollar gains most since 2022
Euro posts biggest drop in years
Tariff-sensitive assets plunge
Mexican peso drops
Bitcoin roars to record
US stock futures surge
By Amanda Cooper
LONDON, Nov 6 (Reuters) -Donald Trump's rapid confirmation as the next U.S. president propelled the dollar and punished the euro as investors bet on tariffs on imports affecting trade while tax cuts could benefit U.S. business.
U.S. stock futures rallied almost by the most in a year, while the dollar was set for its largest one-day jump since 2022 . Bitcoin hit record highs and Treasuries were battered.
Trump's pledges to raise tariffs, cut taxes and slash regulations encouraged investors to dive into a range of assets that looked likely to benefit from such policies.
Markets that could suffer under tougher tariffs, including those in some of the United States' major trading partners, bore the brunt of the sell-off, pushing the Mexican peso MXN= to its lowest in over two years, while the euro EUR=EBS was set for its largest one-day drop since March 2020.
Adding to the confidence in markets was Republicans winning control of the U.S. Senate, ensuring Trump's party will control at least one chamber of Congress next year, part of a potential so-called "Red sweep".
"It's extremely early days to be drawing conclusions about what a Trump presidency and potential clean sweep might mean for the U.S. and global economy and financial markets. Certainly, higher tariffs would involve greater inflation and less world trade growth," said Philip Shaw, chief economist at Investec.
"With stocks, one of the primary drivers is Trump's promise to reduce corporate taxes for companies that make goods in America. And obviously, we’ve seen a bit increase in U.S. stock futures and that’s carried through to European markets as well."
European stocks rallied, led by defence shares and banks, while renewable energy shares dropped.
The election could have far-reaching implications for tax and trade policy, as well as U.S. institutions. The outcome affects assets globally and could determine the outlook for U.S. debt, the strength of the dollar and a host of industries that make up the backbone of corporate America.
INTEREST RATES SEEN HIGHER
"The consequence is a higher path of rates," said Nick Ferres, chief investment officer at Vantage Point Asset Management in Singapore. He was buying bank shares in anticipation that higher yields and stronger growth would benefit their earnings.
Investors sold U.S. Treasuries, partly on the expectation that higher tariffs would inevitably filter through to consumer prices, but also because Trump's promises on spending risk worsening the government's finances.
"Next year will be a year in which there'll be a lot of discussion in terms of fiscal issues in the United States," Moelis vice chairman and managing director Eric Cantor told a conference in Abu Dhabi on Wednesday as the election results were trickling in.
Meanwhile, shares in Trump Media and Technology Group DJT.O surged in premarket trading, while those in Tesla TSLA.O, headed by Trump supporter Elon Musk, jumped nearly 13%.
Bitcoin surged to a record high, betting on a softer line on cryptocurrency regulation.
"This rally isn’t just about the election; it’s about the fundamental shifts happening in the digital financial system, of which bitcoin is the leader. People are waking up to the fact that traditional systems are changing,” said Nigel Green, chief executive of deVere Group.
"Markets are growing confident that the election result will be called and that a ‘red sweep’ of Congress is possible," said Ben Emons, founder of Fedwatch Advisors in Washington.
The results so far suggested markets had gained clarity faster than in 2020, when Joe Biden was announced the victor some four days after election night.
"That's what markets have been most worried about, that there would be a long, drawn-out fight over who won," said Jamie Cox, managing partner at Harris Financial Group.
Additional reporting by Lewis Krauskopf, Suzanne McGee, Michelle Conlin, Nupur Anand, Chibuike Oguh, Noel Randwich, Saqib Ahmed, Saeed Azhar, Caroline Valetkevitch, Tom Westbrook, Kevin Buckland, Megan Davies, Douglas Gillison, Carolina Mandl, Lananh Nguyen, Sinead Cruise and Alex Cornwell; Writing by Michelle Price and Amanda Cooper; Editing by Paritosh Bansal, Sam Holmes, Peter Graff
免責聲明: XM Group提供線上交易平台的登入和執行服務，允許個人查看和/或使用網站所提供的內容，但不進行任何更改或擴展其服務和訪問權限，並受以下條款與條例約束：（i）條款與條例；（ii）風險提示；（iii）完全免責聲明。網站內部所提供的所有資訊，僅限於一般資訊用途。請注意，我們所有的線上交易平台內容並不構成，也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。
所有缐上交易平台所發佈的資料，僅適用於教育/資訊類用途，不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議，或是交易價格紀錄，或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。
本網站的所有XM和第三方所提供的内容，包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接，皆爲‘按原狀’，並作爲一般市場評論所提供，而非投資建議。請理解和接受，所有被歸類為投資研究範圍的相關内容，並非爲了促進投資研究獨立性，而根據法律要求所編寫，而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊，相關詳情請點擊 這裡查看。
