Stocks, bond yields and bitcoin surge as Trump wins U.S. election
CTV
Stock prices, bond yields and bitcoin surged Wednesday as voters returned former U.S. president Donald Trump to the White House and the Republican party gained control of the Senate.
Stock prices, bond yields and bitcoin surged Wednesday as voters returned former U.S. president Donald Trump to the White House and the Republican party gained control of the U.S. Senate.
Investors expect Trump's victory to lead to faster economic growth and more market-friendly policies.
Ahead of U.S. markets opening Wednesday, the future for the S&P 500 gained 1.23 per cent and the future for the Dow Jones Industrial Average was up 1.02 per cent. The Nasdaq composite future was 1.43 per cent higher.
The price of bitcoin jumped nearly eight per cent to a record US$75,345.00, as investors bet on a victory for Trump, who has pledged support for cryptocurrencies. It later fell back to US$74,525.00.
Bond yields also surged, with the yield on the 10-year Treasury climbing to 4.4 per cent from 4.28 per cent on Tuesday.
“The markets are scrambling to figure out what happens next, but for the time being, the market is pricing in a higher growth and higher inflation outlook,” Peter Esho of Esho Capital said in a commentary.
In early European trading, Germany's DAX climbed 1.3 per cent to 19,503.40, while the CAC 40 in Paris advanced 1.9 per cent to 7,550.36. Britain's FTSE 100 was up 1.4 per cent at 8,285.06.
