In a stunning market reaction, the pound has dropped by 1.4% against the dollar following Donald Trump’s projected victory in the 2024 US presidential election. This development has spurred optimism in stock markets around the globe.
- The FTSE 100 and FTSE 250 indices in London saw gains of 1.3% and 1.8%, respectively, driven by investor expectations of Trump’s economic policies.
- US-facing stocks, including major companies like Ashtead and InterContinental Hotels, are leading the surge with notable gains.
- In the US, stock market futures indicate a promising opening, with expectations of over 2% gains for the S&P 500 and Dow.
- Bitcoin prices soared to a new high, reflecting market confidence in Trump’s so-called ‘Crypto President’ approach.
Following the declaration of Donald Trump as the projected winner of the 2024 US presidential election, the financial markets have responded swiftly. The pound’s decline of 1.4% against the dollar highlights the currency’s vulnerability in the wake of political shifts. Investors are bracing for the implications of Trump’s policies, especially regarding tariffs and increased fiscal spending, which are expected to fuel inflation and sustain high US interest rates.
The ripple effect of Trump’s victory has been positive for stock markets. London’s FTSE 100 index climbed 1.3%, while the mid-cap FTSE 250 saw a more significant rise of 1.8%. This surge is largely attributed to expectations of growth-friendly policies from the Trump administration. Stocks with US exposure have been at the forefront, with Ashtead shares jumping 6.8% and InterContinental Hotels seeing a 5.7% rise.
US stock markets are prepared for a robust opening. Futures for the S&P 500 and Dow Jones indicate potential gains exceeding 2%. Investors are evidently optimistic about Trump’s proposed policies, which are anticipated to boost economic growth and market activities.
Meanwhile, bond markets have experienced notable movements. US Treasury yields increased sharply, with the 10-year bond yield reaching 4.47%. This rise in yields is a reflection of expected higher growth and spending under Trump’s leadership. Conversely, European bond yields declined as concerns about the impact of Trump’s policies on global growth persist, leading central banks to contemplate possible rate cuts.
The cryptocurrency market has also felt the impact of Trump’s election win. Bitcoin appreciated dramatically, surging 8.5% to a record $75,060. Trump’s reaffirmed commitment to ‘putting America first,’ emphasized in his acceptance speech, seems to have bolstered confidence in digital currencies, earning him the moniker ‘Crypto President’ among enthusiasts.
The market’s reaction to Trump’s projected win underscores the broader economic implications of his forthcoming policies.
