New York, November 6, 2024 – Financial markets in the United States and around the world surged today as Donald Trump secured victories in two of the seven key swing states and took the lead in the remaining five, prompting traders to express strong confidence in his potential win. This optimistic outlook is reflected in the notable rises in the US Dollar and Bitcoin, alongside significant gains in major stock indices.
US Dollar and Bitcoin Hit New Highs
The US Dollar reached an unprecedented high against the Indian Rupee, climbing to ₹84.22. It also surged more than 1.5% against the Japanese Yen, hitting ¥154.33—the highest level since July. Additionally, the Dollar appreciated by 1% against the Euro and soared over 3% against the Mexican Peso.
Bitcoin mirrored this upward trend, soaring nearly $6,000 to hit a record $75,330.88, surpassing its previous peak of $73,797.98 set in March this year. Trump’s campaign promise to establish the US as the “bitcoin and cryptocurrency capital of the world” appears to be resonating with investors, contributing to Bitcoin’s rally.
Stock Markets Respond Positively
Wall Street responded enthusiastically, with the S&P 500 futures and Nasdaq both rising by over 1%. Investors are hopeful that a Trump victory would bring about fresh tax cuts and higher tariffs, policies that are generally perceived as business-friendly. The anticipation of reduced corporate regulation and favorable economic measures has buoyed market sentiments.
In Asia, US stock futures climbed following reports of Trump’s significant lead over Kamala Harris. The BSE Sensex surged nearly 800 points, while India’s NSE Nifty 50 rose by 0.88% to 24,428.15 points by midday. All 13 major sectors in the Indian market gained, with the IT sector leading the charge, increasing by approximately 3.5%. This boost is attributed to stronger demand from the US services sector, where IT firms derive a substantial portion of their revenue.
Jefferies analysts noted, “Trump’s plans to lower corporate taxes could benefit Indian IT companies by increasing demand, and the China +1 trade strategy will support various domestic sectors.”
European Markets Exhibit Caution
Contrastingly, European stock traders showed less enthusiasm. Concerns over a potential global trade war and the threat of increased tariffs on European exports led to declines in major European indices. The EUROSTOXX 50 fell by 0.61%, the DAX dropped 0.55%, and the FTSE remained largely unchanged.
Currency Markets and Future Projections
In currency markets, the Dollar Index surged by 1.6% to 105.19, marking the largest daily increase since early 2023. The Euro declined by 1.57% against the Dollar, dropping to USD 1.0757 from a one-month high of USD 1.0937 overnight.
Central Bank Policies Awaited
The election results come at a critical time as the US Central Bank is set to announce its latest policy decisions. Analysts anticipate a potential 25 basis point cut in lending rates, following a previous 50 basis point reduction in September this year. This move is expected to further influence market dynamics and investor strategies.
Donald Trump’s leading position in the swing states has ignited a wave of optimism across global financial markets. Investors are keenly anticipating his proposed economic policies, which promise tax cuts, higher tariffs, and a focus on making the US a global leader in cryptocurrency. While the US and Asian markets celebrate these developments, European traders remain cautious amidst fears of escalating trade tensions.
