Global stocks soar as Trump wins US election

Cat:

Related stories

G7 vs. the World: GDP, Population, and Military Strength

Key Takeaways G7 countries represent 28.4% of global GDP...

US drillers cut oil and gas rigs for 10th week in a row, Baker Hughes says

U.S. energy firms this week cut the number of...

Tinubu Mourns, Pays Tribute to Legendary Super Eagles Goalkeeper Peter Rufai

By Abiola Olawale President Bola Ahmed Tinubu has expressed profound...

Natasha vs Akpabio: Court Orders Senate President To Recall Senator Natasha

Warns Natasha Against inappropriate Conduct By Abiola Olawale The Federal...

Global stock markets led by the UK and Europe have been boosted while the US dollar has surged as traders around the world react to Donald Trump winning the US presidential election.

The UK’s FTSE 100 jumped by about 1.5 per cent when markets opened on Wednesday as the Republican win offered certainty for the future of the world’s biggest economy.

It remained about 1.2 per cent higher later in the morning when it was declared that Mr Trump had won the election.

Strong gains in premarket trading in New York showed stocks on Wall Street look set for a fresh rally on Wednesday in response to the result.

Daniel Casali, chief investment strategist at Evelyn Partners, said markets were reacting positively to the prospect of a “clear Trump victory” and Republicans controlling Congress.

“The combination of a clean sweep victory means tax cuts are likely over the coming year,” he said.

“That will be beneficial for equities as it means lower taxes will boost company earnings.

“So, the combination of a clear victory along with the impact of those tax cuts, will be beneficial for growth and the equity markets are reacting positively to that.”

The pound was down about 1 per cent against the US dollar, at 1.292, with the American currency making sharp gains overnight.

Economists said investor sentiment in the US is being bolstered by the prospect of a lower tax environment under a Trump presidency, while the implementation of trade tariffs could serve to strengthen the US dollar.

The rising dollar also reflects expectations that Mr Trump’s policies will add to inflation in the economy and therefore keep interest rates higher for longer, experts said.

Samuel Tombs, chief US economist for Pantheon Macroeconomics, said it was raising its forecast for US inflation under the expectation that Mr Trump will introduce higher tariffs on all imports next year.

This would give the Federal Reserve less scope to ease interest rates, he said.

Nevertheless, the knock-on impact on the UK economy and countries around the world continues to come under the spotlight.

Higher US import tariffs would reduce global economic growth by about one percentage point over the next two years, according to analysis from the National Institute of Economic and Social Research (Niesr).

For the UK, Niesr estimates that economic growth would slow to 0.4 per cent in 2025, down from a forecast of 1.2 per cent.

Ahmet Kaya, principal economist for Niesr, said the UK economy could be “one of the countries most affected” with the proposed tariffs coming as “yet another shock” to the country.

Donald Trump has said he wants to increase tariffs on goods imported from around the world by 10 per cent, rising to 60 per cent on goods from China.

Meanwhile stock futures in the US jumped up sharply overnight at Mr Trump’s victory.

Shares of Trump Media & Technology Group, a social media company closely tied to the candidate and the parent company of his platform Truth Social, surged 40 percent in overnight trading on the Robinhood brokerage platform.

Shares of Trump Media & Technology Group surged 40 percent overnight (AP)

Analysts generally assume Trump’s plans for restricted immigration, tax cuts and sweeping tariffs would put more upward pressure on inflation and bond yields, than Harris’s center-left policies.

Trump’s proposals would also tend to push up the dollar and potentially limit how far US interest rates might ultimately be lowered.

In Asia, early trading also climbed on Wednesday morning. Japanese benchmark stock market index Nikkei 225 soared 2.6 percent while Australia’s S&P/ASX 200 Index rose 0.81 percent. New Zealand’s S&P/NZX 50 Gross Index was little changed.

Credit: Independent. Co.uk

The New Diplomat
The New Diplomathttps://newdiplomatng.com/
At The New Diplomat, we stand for ethical journalism, press freedom, accountable Republic, and gender equity. That is why at The New Diplomat, we are committed to speaking truth to power, fostering a robust community of responsible journalism, and using high-quality polls, data, and surveys to engage the public with compelling narratives about political, business, socio-economic, environmental, and situational dynamics in Nigeria, Africa, and globally.

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

NDN
Latest News
US drillers cut oil and gas rigs for 10th week in a row, Baker Hughes saysExclusive! Tinubu Tips Late Ajimobi's Wife, Florence, Others for Ambassadorial PostsTinubu Mourns, Pays Tribute to Legendary Super Eagles Goalkeeper Peter RufaiNatasha vs Akpabio: Court Orders Senate President To Recall Senator NatashaHadi Sirika Denies Defection to ADC Coalition Rumors, Reaffirms Loyalty to Buhari, APCChina Snubs U.S. Crude for Third Month, Even as Ethane Trade RestartsHow Super Eagles Icon Peter Rufai passed Away at 61Dakuku Peterside’s Beneath the Surface Book Out in OctoberOil Prices Dip on Confirmation of Inventory BuildBuhari In Stable Condition - Ex-Aide ConfirmsBREAKING: Ex-President Buhari sick, hospitalised abroad2027: Abure, Usman Clash Over Peter Obi’s Rising Profile in ADC CoalitionMTN’s Dabengwa Tier III Cloud Data Centre: A New Era for West African Tech and AIGanduje: Why are they resigning?OPEC Reports a Global Oil Production Decline in 2024
X whatsapp