Investors react positively to Trump's promises of tariffs, tax cuts, and reduced regulations

From Investing.com: 2024-11-06 06:17:56

Donald Trump’s swift confirmation as the next U.S. president boosted the dollar and hurt the euro as investors anticipated tariffs on imports but hoped for tax cuts. U.S. stock futures surged, the dollar rose, and Treasuries fell. Markets reacted positively to Trump’s promises to raise tariffs, cut taxes, and reduce regulations.

Republicans winning control of the U.S. Senate further bolstered investor confidence in Trump’s policies. Markets reacted strongly, with European stocks rising, led by defence and banks. Renewable energy shares dropped. The election outcome could have significant implications for tax, trade, and U.S. institutions, impacting global assets and industries.

Interest rates are predicted to rise due to Trump’s proposed policies. Investors sold U.S. Treasuries in anticipation of higher tariffs raising consumer prices, and concerns about government finances. Shares in Trump Media and Technology Group and Tesla soared. Bitcoin reached a record high amid expectations of a more relaxed approach to cryptocurrency regulation.

Market confidence in a clear election result and possible “red sweep” of Congress grew. The speed of clarity in the election results contrasted with the uncertainty in 2020. Investors welcomed the swift resolution, avoiding a prolonged dispute over the election outcome.



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