World markets react to Trump’s election impact

November 2024 saw significant shifts in global markets following Donald Trump’s U.S. election victory on November 5.

Wall Street experienced a rally, and the dollar gained against major currencies due to Trump’s tariff policies, which affected European exporters and boosted U.S. stocks.

However, concerns loom for December, as market complacency may lead to volatility amid potential inflation and supply chain disruptions.

The euro faced its most substantial monthly decline since early 2022, primarily due to U.S. tariff risks and economic concerns in Europe. Analysts predict continued fluctuation in currency markets.

Crypto surge

In cryptocurrency, bitcoin surged by 37%, reaching near $100,000, driven by expectations of favorable regulations under Trump, despite concerns about potential speculative excess.

The Nasdaq 100 performed well, bolstered by strong performances from Tesla and Nvidia. Nonetheless, fears about supply chain disruptions from tariffs are growing, prompting cautious investment.

U.S. bank stocks rose significantly, with expectations of deregulation under Trump’s administration, contrasting with European banks’ struggles amid economic weakness.

Bond markets diverged, with U.S. yields trending higher due to inflation and fiscal policy outlooks, while German yields decreased, reflecting a weakening economy in Europe.