NYC, Nov 06 (V7N)- The dollar surged, bitcoin reached an all-time high, and global stock markets rallied on Wednesday as early US election results showed Donald Trump faring better than anticipated against Democratic candidate and Vice President Kamala Harris.
Despite polls indicating a tight race, early projections suggested the Republican candidate was performing well, especially in key battleground states. As a result, the so-called "Trump Trade"—a market strategy linked to pro-Trump policies—received a boost, with financial markets responding optimistically to the potential for Trump to regain the presidency.
The dollar made notable gains, jumping 1.5% against the yen to 154.33, its strongest since July, while also gaining over 1% against the euro and more than 2% versus the Mexican peso. Meanwhile, bitcoin surged nearly $6,000 to a record $75,005.06, surpassing its previous high of $73,797.98, set in March. Trump’s campaign pledge to position the US as the “world capital of bitcoin and cryptocurrencies” is believed to have fueled investor enthusiasm for bitcoin.
The Republican Party’s gains in Congressional races have further stoked expectations of future tax cuts, increased tariffs, and deregulation, all of which are anticipated to strengthen the dollar. Analysts predict that a Trump and Republican sweep could lead to substantial policy shifts, driving up Treasury yields and impacting Federal Reserve strategies on inflation.
SPI Asset Management’s Stephen Innes noted that the combination of a Republican president and Republican-controlled Congress could either boost economic policy flexibility or maintain stability if gridlock continues.
The currency gains prompted a rise in Japan’s Nikkei 225 index, up 2.3% in Tokyo, with exporters leading the charge. Similar advances were observed in major Asian markets such as Shanghai, Sydney, and Seoul, while Hong Kong and Jakarta saw slight declines.
On Wall Street, all three main indexes climbed over 1%, with traders closely monitoring results from swing states. Key exit polls showed Trump potentially leading in Georgia, which triggered additional market enthusiasm.
In Asia, China is following the US election closely. Trump has promised increased tariffs on Chinese imports, a development that would escalate existing trade tensions.
Key Financial Figures (as of 3:00 am GMT):
- Dollar/Yen: UP at 154.23 yen from 151.60 yen on Tuesday
- Euro/Dollar: DOWN at $1.0750 from $1.0930
- Pound/Dollar: DOWN at $1.2900 from $1.3035
- Tokyo Nikkei 225: UP 2.3% at 39,341.44
- Hong Kong Hang Seng Index: DOWN 2.3% at 20,525.09
- West Texas Intermediate Crude: DOWN 0.4% at $71.73 per barrel
- Brent North Sea Crude: DOWN 0.4% at $75.21 per barrel
- Dow Jones Industrial Average (New York): UP 1.0% at 42,221.88
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