Global markets have reacted positively to Donald Trump's apparent victory in the US presidential election. European stock indices, including those in Germany, the UK, France, and Italy, opened with gains, reflecting investor optimism. Similarly, Japan's Nikkei index saw a significant rise, as investors anticipate Trump's policies might include lower taxes and reduced regulations.
The US dollar strengthened against the euro and yen, benefiting American exports due to currency devaluation. In contrast, China's markets fared poorly, with the Hang Seng index dropping over three percent, as Trump's protectionist stance could negatively impact China's export-driven economy.
The anticipation of Trump's return to power has also bolstered stocks such as Tesla, with its shares skyrocketing by 13%. Elon Musk's support for Trump and expectations of favorable policies for domestic manufacturing have contributed to this surge. Meanwhile, markets in Israel have experienced gains, with the shekel and TASE indices reaching record highs, driven by Trump's pro-Israel policies.
Despite the initial market optimism, Trump's unpredictability raises concerns about the long-term economic impact. His inclination towards tariffs and protectionism could lead to increased inflation and pressure on the Federal Reserve, potentially destabilizing global trade.
Overall, while Trump's victory has fueled a market rally, it also introduces uncertainties, particularly for economies reliant on international trade. The global financial landscape remains watchful as it adapts to potential shifts in US economic policies under Trump's leadership.
