- The economy is affected by the outcome of the US presidential election
- Bitcoin sees record growth
- Latest exchange rates
The economy is affected by the outcome of the US presidential election
On Wednesday, the dollar rose, stocks rose and bitcoin reached record highs as the world prepares for Donald Trump's presidency, which analysts say could reignite inflation.
The Republican candidate made a stunning comeback in the political arena, defeating Vice President Kamala Harris. He will return to the White House four years after he was due to hand it over to Joe Biden.
Long before the US media declared Trump the winner, Wall Street stock futures began to soar in anticipation of the opening of the markets, as the former President confidently announced his "great" victory.
The main European stock indices jumped up in the morning. Asia was divided, as Chinese shares suffered amid concerns that Mr Trump will impose tariffs on Chinese imports.
Markets were also focused on plans to stimulate China's economy, the world's second largest after the United States.
"Trump's trade is already swinging," noted Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
Trump's victory is expected to bring sweeping US tax cuts, which are seen as a driver of inflation, meaning the Federal Reserve will cut interest rates more slowly in the coming months.
This forecast has boosted the dollar against its main competitors: against the euro, the "greenback" has appreciated by more than 1.5%.
On Thursday, the Fed will announce its latest interest rate decision.
"With the Fed expected to announce a 25-basis point rate cut tomorrow, we are already seeing weak expectations for the December meeting as the prevailing view is that Trump's policies are fundamentally inflationary," said Joshua Mahony, analyst at Traders Scope Markets.
US Treasury yields also found support on Wednesday.
"Investors are bracing themselves for a rise in tariffs and a halt in immigration (to the US), and such policies are seen as inflationary and could mean interest rates will be higher next year," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
She added that "it is widely expected that a Trump presidency will mean less regulation for big tech and financial companies".
"Tesla shares were up more than 15% in US pre-lunch trading after Mr Trump praised its CEO Elon Musk, one of his main campaign donors, calling him a "star" in his victory speech.
Bitcoin sees record growth
Bitcoin has risen by $6,000 to a record high of $75,371.67, surpassing the previous record of almost $74,000 set in March.
D. Trump has vowed to make the United States "the bitcoin and cryptocurrency capital of the world" and to put tech billionaire Musk in charge of a wide-ranging audit of government spending.
At the same time, oil prices have fallen "on expectations that more crude oil will come from US wells under Trump", added Mr Streeter.
"Another Trump presidency is likely to focus more on energy independence, with policies that favour fossil fuels and encourage deregulation of the oil, gas and coal industries," she said.
Latest exchange rates
Key figures at 10.30 a.m. GMT:
Euro/dollar: FELL to $1.0751 from $1.0930 (Tuesday)
Pound/dollar: FELL to $1.2894 from $1.3035
Dollar/Yen: PICKED UP to 154.00 yen from 151.60 yen
Euro/pound: FELL to 83.40 pence from 83.82 pence
London - FTSE 100: UP 1.4% to 8 289.58
Paris - CAC 40: UP 1.7 percent to 7 531.34
Frankfurt - DAX: UP 1.1 per cent to 19 464.15
Tokyo - Nikkei 225: UP 2.6 percent to 39 480.67 (closing)
Hong Kong - Hang Seng Index: FELL 2.2 percent to 20 538.38 (closing)
Shanghai - Composite: DOWN 0.1 percent to 3 383.81 (closing)
New York - Dow: UP 1.0 percent to 42 221.88 (closing)
West Texas Oil (WTI): FELL 1.7 per cent to USD 70.79 per barrel
Brent oil (North Sea): DOWN 1.7 % to USD 74.26/bbl
Based on ELTA reports
