Republican presidential candidate and former U.S. President Trump delivers a speech at a campaign rally held at Santander Stadium in Reading, Pennsylvania, the United States, on November 4, 2024.
Brian Snyder | Reuters
This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
Trump will become the 47th President of the United States
republican presidential candidate According to NBC News, Donald Trump will be elected as the 47th President of the United States after defeating Democratic candidate Kamala Harris. If Trump follows through on his campaign promises, he will enact tax cuts, mass deportations and impose steep tariffs on imported products.
Multiple records closed
Against the backdrop of broad market gains, all three major U.S. stock indexes rose sharply on Wednesday, hitting record highs. this 10-Year Treasury Bond The yield jumped 14 basis points to 4.43%. Asia-Pacific markets were mostly higher on Thursday, although Nikkei 225 Index It fell about 0.4%.
Potential stimulus measures in response to tariffs
Trump has floated the idea of imposing a 60% tariff on Chinese imports. If the plan comes to fruition, it will curb China’s exports and reduce economic growth. Su Yue, chief economist at the Economist Intelligence Unit, said the Chinese government may respond to the situation by launching larger stimulus measures.
China’s exports surge
The threat to impose tariffs on China comes amid a surge in Chinese exports. In October, exports increased by 12.7% year-on-year in U.S. dollar terms. It was the largest increase since March 2023, according to LSEG data, and better than the 5.2% forecast in a Reuters poll. Imports fell 2.3%, compared with forecasts for a 1.5% decline.
(PRO) Largest active ETF launched in Europe
This week, JPMorgan launched the world’s largest active exchange-traded fund in Europe. ETFs not only accumulate capital gains but also return income to investors. This helps ETFs weather volatile periods – such as now.
bottom line
Donald Trump’s victory in the US presidential election provided a boost to risk assets.
Marc Pinto, head of Americas equities at Janus Henderson Investors, wrote in a note that he was optimistic about “lower corporate tax rates, deregulation and industrial policies that favor domestic growth.” The support could boost the economy and, in turn, the stock market.
Investors’ expectations on these fronts have boosted stocks. In short, the Trump rally has begun.
Bank stocks rallied sharply, with many posting double-digit gains, amid loosening regulations in the sector.
So-called traditional carmaker stocks, e.g. General Motors and FordTrump’s vow to lower vehicle emissions standards and eliminate incentives for electric vehicles has given their engines a boost.
That’s bad for electric car companies, but TeslaThe exception is stocks that surged 14.8%. Chief Executive Musk has been a staunch supporter of Trump, and investors appear to believe that relationship could be an asset to the company.
at the same time, Bitcoin Cryptocurrency prices surged 10% overnight to $76,493.86, setting a new cryptocurrency high as Trump presented himself as a pro-crypto candidate.
Trump’s victory pushed major U.S. stock indexes to new highs. this S&P 500 Index up 2.53% Dow Jones Industrial Average Soared 3.57% Nasdaq Index up 2.95%.
To be sure, yesterday’s wild rally could have been as much a relief rally as it was a Trump rally.
“A decisive victory removes the suspense of an uncertain or contested outcome,” said Angelo Kourkafas, senior investment strategist at Edward Jones. “That in itself removes some uncertainty and Contributing to the strong response we’ve seen in the market.
Therefore, as sentiment and expectations fade, the rally is likely to fade as well.
In addition, Ma Yongyu, chief investment officer of Bank of Montreal Wealth Management, pointed out that rising government bond yields and potential widespread tariffs have cast a shadow on the market.
For now, however, Trump’s rally is lighting up the market.
—CNBC’s Jesse Pound, Scott Schnipper, Alex Harring, Yun Li and Jesse Pound contributed to this report.
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