Stocks and Bitcoin surge as Trump makes a comeback
European and Asian stock markets saw an increase on Monday, leading to Bitcoin reaching a new high, with Donald Trump’s return to the United States presidency looming. The US dollar faced a decline against major currencies after reports suggested that Trump would not impose tariffs immediately upon assuming office once again.
The European single currency, the euro, strengthened against the dollar by 1.4%, with the pound also gaining ground by 1.1% against the US currency. Oil prices experienced a decrease of more than 1% as well. Analysts observed that a potential second term for Trump might be less turbulent compared to his initial tenure. There is speculation that the Treasury Secretary’s stance on tariffs could act as a stabilizing factor on the President’s decision-making.
Bitcoin, the leading cryptocurrency, surged to over $109,000 and saw market capitalization rise significantly. Trump, who has indicated plans for deregulation in the crypto sector, announced the launch of his cryptocurrency named $TRUMP, attracting substantial interest within the market.
The Frankfurt Stock Exchange’s DAX index surpassed 21,000 points for the first time, reflecting the positive market sentiment. The FTSE 100 index in London also neared record highs. As Wall Street remained closed for the Martin Luther King holiday, futures of US stocks showed a positive trend.
Anticipation is heightened as Trump is set to take office, with investors observing the implications of potential changes in taxes, spending, and trade agreements. The financial markets are bracing for shifts in policies, with expectations of tax cuts, regulatory amendments, and alterations in international trade relations.
In Asia, Hong Kong’s stock market led the gains, alleviating concerns of a trade war escalation. Despite South Korea’s economic growth forecast being revised downwards due to political uncertainty, the country introduced a support package for exporters worth $250 billion.
Overall, the financial markets are gearing up for a period of change and transformation as Trump’s second term commences. Investors are closely monitoring policy decisions, anticipating shifts in global trade dimensions, economic regulations, and internal governance structures. The upcoming weeks promise to bring a mixture of uncertainty and optimism as new policies and agendas are unveiled.
