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European stock markets rose yesterday, mostly, in the conditions in which Republican Donald Trump will return to the White House, following his victory in the US presidential elections.
At the same time, according to NBC News, Republicans are expected to regain majority control over the US Senate in 2025.
Donald Trump thanked the Americans for electing him "the 45th and 47th president of the USA", promising them that this "will be the golden age of America". Trump added: "This is a magnificent victory for all Americans and will allow us to make America great again." The shares of the Swiss bank UBS AG appreciated by 3.6%, to 28.38 francs at 15.00 local time, those of the private bank Julius Baer Group AG, by 2.2%, to 55.58 francs. The securities of the German bank Deutsche Bank AG registered an advance of 2.2%, at 16.27 euros at 15.02. Banks in Europe could benefit from Donald Trump's mandate, say Citigroup analysts, quoted by CNBC.
The SMI index of the Swiss market rose by 0.5%, to 11,923.57 points at 15:06, the British FTSE 100 - by 0.5%, to 8,209.05 points.
• The European auto sector, in decline
Conversely, the shares of the German car company Bayerische Motoren Werke AG (BMW) depreciated by 7%, to 67.54 euros at 15:03, those of Porsche AG - by 6.3%, to 61.88 euros, against the background fears that the US will increase customs duties on imported cars, after the return of Donald Trump to the White House. The shares of Mercedes-Benz Group AG fell by 6.6%, to 52.24 euros at 15:05, those of Volkswagen AG - by 4.5%, to 86.45 euros. The DAX index of the Frankfurt market fell by 0.5%, to 19,165.69 points at 15.09.
The additional tariffs would hurt German automakers, which ship more vehicles to the US than any other country. German automakers operate several factories in the US, where they assemble cars for both local buyers and for export.
• US records
US stock markets opened yesterday's session significantly higher, to record levels, on the back of Trump's victory.
The shares of Trump Media & Technology Group Corp., a media and technology company owned by Trump, rose by 17.3% to $39.82 at 09:38 local time. Shares of electric car maker Tesla Inc., controlled by Elon Musk, rose 14.4% to $287.55 at 9:40 a.m., boosted by billionaire Musk's support for Donald Trump.
"Tesla shares are rising due to the privileged connections between Elon Musk and Donald Trump, who owes him a lot," says Andrea Tueni, analyst at Saxobank.
The Dow Jones Industrial Average stock index rose by 3.1%, to 43,511.78 points at 09:41, the S&P 500 - by 2.1%, to 5,902.47 points, the Nasdaq Composite - by 2.3%, to 18,854, 76 points.
• Asian markets fear a new Trump mandate
Asian markets fell yesterday, mostly, on the background of information related to Trump's victory in the elections.
"If Trump wins, I think it will put pressure on Asian markets in general - clearly with a big focus on China," said Nick Twidale, chief analyst at AT Global Markets Australia, quoted by Bloomberg, adding: " The bigger players will want to have less exposure to the market in the current context."
According to the quoted source, there are concerns among investors that a new Trump presidency could keep inflation high and introduce higher tariffs, complicating the Federal Reserve's task of keeping prices in check. In addition, the situation of Asian export-based economies will suffer.
The Hang Seng index of the Hong Kong Stock Exchange fell by 2.2%, to 20,538.38 points, the CSI 300 of the Shanghai Stock Exchange - by 0.5%, to 4,024.28 points, the Kospi of the Seoul market - by 0, 5%, at 2,563.51 points. In contrast, the Tokyo Stock Exchange's Nikkei 225 rose 2.6% to 39,480.67 points. In Japan, stocks rose as the appreciating dollar put pressure on the yen, which benefits the country's export-oriented economy.
• The dollar and Bitcoin appreciate
The US dollar rose yesterday, supported by the results of the US presidential elections. Meanwhile, Bitcoin hit a record high as traders bet on potential tax cuts, increased tariffs and rising inflation during Trump's second term.
The dollar rose about 1.4% against a range of currencies, including the British pound, the euro and the Japanese yen, according to the BBC. In the first part of the day, the value of Bitcoin increased by 6,000 dollars, reaching a record of 75,371.69 dollars, surpassing the previous maximum of 73,797.98 dollars reached in March of this year. The advance came as Trump had previously pledged to make the US "the bitcoin and cryptocurrency capital of the world".
His approach contrasts sharply with that of the Biden administration, which has led a radical crackdown on crypto firms in recent years.
• Prices of raw materials, decreasing
The prices of raw materials, from oil to metals and grains, fell yesterday, along with the appreciation of the dollar.
"This is the initial response in commodity markets to the US election and the results showing a Trump victory," said Ole Hansen, director of commodity strategy at Saxo Bank, as quoted by Reuters. In his opinion, "the main concern is that in a Trump 2.0 scenario it is possible to see tariffs on Chinese products, which is a negative element for metals, given that China is a large consumer of copper, iron ore iron and steel".
The futures price of a barrel of Brent oil for delivery in January 2025 fell by 2.3% in the second part of the day yesterday, at ICE Futures Europe, reaching $73.78. On Nymex USA, the price of West Texas Intermediate (WTI) oil for delivery in December 2024 fell by 2.4%, to 70.26 dollars per barrel at 09.16 local time.
The price of gold for delivery in December decreased by 2.6%, to 2,678.50 dollars an ounce at Comex New York, at 09.16. On the spot market, the quotation lost 3.1%, reaching $2,659.89 an ounce.
The price of wheat for delivery in December fell by 1.3%, to 5.65 dollars/bushel at 08:44, the quotation of cocoa beans for delivery in March 2025 - by 4.36%, to 6,649 dollars a ton.
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