The dollar surged, stocks rallied and bitcoin struck a record high Wednesday as the world gears up for a Donald Trump presidency that analysts say could rekindle inflation.
The Republican candidate made a stunning political comeback as he defeated vice-president Kamala Harris to return to the White House, four years after losing it to Joe Biden.
Well before several US media declared Trump the winner, Wall Street stock futures soared hours ahead of the market鈥檚 opening bell as the former president confidently claimed a 鈥榤agnificent鈥� victory.
Europe鈥檚 main equity indices jumped in morning deals, while Asia diverged, with Chinese stocks hit by expectations that Trump would impose tariffs on Chinese imports.
Market focus was also on plans to stimulate China鈥檚聽economy, the world鈥檚 second biggest after the United States.
鈥楾rump trade is in full swing,鈥� noted Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
A Trump win is expected to result in sweeping US tax cuts, seen as inflationary and therefore leading to fewer interest-rate cuts by the Federal Reserve in the coming months.
That boosted the dollar against main rivals, with the greenback up more than 1.5 per cent against the euro.
The Fed announces its latest rate decision on Thursday.
鈥榃ith the Federal Reserve expected to announce a likely 25 basis-point cut tomorrow, we are already seeing expectations reined in for the December meeting given the perception that Trump鈥檚 policies are inherently inflationary,鈥� forecast Joshua Mahony, analyst at traders Scope Markets.
US Treasury yields also won support Wednesday.
