Berliner Boersenzeitung - Dollar soars, stocks rally as Trump wins US election

The Republican candidate made a stunning political comeback as he defeated Vice President Kamala Harris to return to the White House, four years after losing it to Joe Biden.

Well before several US media declared Trump the winner, Wall Street stock futures soared hours ahead of the market's opening bell as the former president confidently claimed a "magnificent" victory.

Europe's main equity indices jumped in morning deals, while Asia diverged, with Chinese stocks hit by expectations that Trump would impose tariffs on Chinese imports.

Market focus was also on plans to stimulate China's economy, the world's second biggest after the United States.

"Trump trade is in full swing," noted Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

A Trump win is expected to result in sweeping US tax cuts, seen as inflationary and therefore leading to fewer interest-rate cuts by the Federal Reserve in the coming months.

That boosted the dollar against main rivals, with the greenback up more than 1.5 percent against the euro.

The Fed announces its latest rate decision on Thursday.

"With the Federal Reserve expected to announce a likely 25 basis-point cut tomorrow, we are already seeing expectations reined in for the December meeting given the perception that Trump's policies are inherently inflationary," forecast Joshua Mahony, analyst at traders Scope Markets.

US Treasury yields also won support Wednesday.

"Investors are bracing for tariffs and a clampdown on (US) immigration, policies considered to be inflationary which are likely to mean interest rates may be more elevated in the years to come," said Susannah Streeter, head of money and markets at Hargreaves Lansdown. .

She added that "expectations are high that a Trump presidency will mean fewer regulations on big tech and big finance".

Shares in Tesla soared more than 15 percent in pre-market US trading after Trump praised the electric car maker's boss Elon Musk, a key campaign backer, as a "star" during his victory speech.

- Bitcoin record -

Bitcoin sprung $6,000 higher to a record $75,371.67, topping its previous peak of nearly $74,000 in March.

Trump has pledged 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 governmental waste.

Elsewhere, oil prices slid "amid expectations that under Trump more crude will flow from US wells", Streeter added.

"Another Trump presidency is likely to place emphasis on energy independence and his policies are likely to favour fossil fuels, promoting deregulation in the oil, gas, and coal industries," she said.

- Key figures around 1030 GMT -

Euro/dollar: DOWN at $1.0751 from $1.0930 on Tuesday

Pound/dollar: DOWN at $1.2894 from $1.3035

Dollar/yen: UP at 154.00 yen from 151.60 yen

Euro/pound: DOWN at 83.40 from 83.82 pence

London - FTSE 100: UP 1.4 percent at 8,289.58 points

Paris - CAC 40: UP 1.7 percent at 7,531.34

Frankfurt - DAX: UP 1.1 percent at 19,464.15

Tokyo - Nikkei 225: UP 2.6 percent at 39,480.67 (close)

Hong Kong - Hang Seng Index: DOWN 2.2 percent at 20,538.38 (close)

Shanghai - Composite: DOWN 0.1 percent at 3,383.81 (close)

New York - Dow: UP 1.0 percent at 42,221.88 (close)

West Texas Intermediate: DOWN 1.7 percent at $70.79 per barrel

Brent North Sea Crude: DOWN 1.7 percent at $74.26 per barrel

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(U.Gruber--BBZ)