Global markets greeted the news of Donald Trump’s win with a hefty dose of optimism as if they were expecting financial miracles from the new president. European, Japanese, and Taiwanese exchanges reacted like they had been rooting for their favorite. Thus, the Stoxx Europe 600 advanced by 1%, with London and French markets following suit. Germany’s DAX and Taiwan’s TAIEX both added 0.5%, and Japan’s Nikkei 225 closed with a 2.2% rise. It was as if the markets were eagerly waiting for the green light to surge.
However, China was not on the same page. Hong Kong’s Hang Seng index closed with a decline of 2.2%, and the Shanghai Stock Exchange slipped by 0.1%. Chinese investors needed a bit more time to digest the political news.
Meanwhile, the Mexican peso, once one of the top-performing currencies, plummeted to its lowest levels since August 2022.
Meanwhile, the US stock market celebrated Trump’s win with a strong opening. The Dow Jones started the morning with an increase of 2.8%, then pushed its gains further to 3.07%, reaching 43,519 points. The S&P 500 and Nasdaq Composite also joined in, adding 2% and 1.8%, respectively.
Experts predict that Trump’s promises to cut corporate taxes and focus on boosting manufacturing could drive further market growth. Inflation might pick up too, but the market is not too worried about that.
The week's big surprise is that Nvidia has overtaken Apple to become the top company by market cap, valued at $3.43 trillion.
