Donald Trump's election victory has significantly influenced global markets, with US stocks witnessing a notable surge. Media, technology, and cryptocurrency sectors have particularly benefited, alongside Tesla, which saw its shares skyrocket by 14%. This surge is partially attributed to investors betting on smaller, cyclical firms profiting from Trump's tax cuts and protectionist policies.
Conversely, European markets have faced setbacks, with concerns looming over potential import tariffs. These tariffs threaten the German automotive sector and renewable energy companies, potentially leading to a decrease in exports. Economists warn that such measures might burden the US economy and could provoke retaliatory actions from the EU, increasing inflation in the eurozone.
Meanwhile, Elon Musk, a vocal supporter of Trump, stands to gain political influence and economic benefits for his companies, including Tesla and SpaceX. Musk's support could secure him a prominent government role, allowing him to influence regulatory practices favorably. However, these potential benefits come alongside challenges from regulators and the geopolitical implications of Trump's policies. As the markets adjust to these changes, gold remains a stable investment amid fears of rising inflation.
