The market winners and losers in Trump’s historic victory

Donald Trump has returned to the White House as the 47th president of the United Statesmaking him the first to serve two non-consecutive terms since Grover Cleveland at the end of the 19th century, with far-reaching implications for the global economy and markets. His Republican Party has won control of the U.S. Senate (the U.S. House of Representatives is still up for grabs), giving him a powerful mandate to advance his political agenda, which focuses on low taxes on corporations and wealthy people, high tariffs on imports and reduction of public spending.

trump He called this a “powerful and unprecedented mandate” in his first speech on Wednesday.

However, a key aspect of their agenda also includes significantly higher tariffsup to 60% on Chinese imports and 10% on other goods, a measure that could reshape the commercial dynamics of the United States. In foreign policyTrump’s stance could lead to a reduction in financial and military support to Ukrainea departure from the Biden administration’s approach, while reaffirming strong support for Israel.

Global stock markets reacted positively to Trump’s victory, and investors were relieved at the prospect of avoiding higher taxes under the Harris administration. The dollar strengthened against other currencies as analysts anticipate inflationary pressures and a potentially tighter stance from the Federal Reserve. As investors adapt to this new political landscape, there are emerging several key winners and losers in global markets.

Five market winners from Trump’s victory as US president

1. Small cap stocks. He Russell 2000 indexwhich tracks U.S. small caps, rose more than 6% in early trading. Europeapproaching all-time highs and marking its biggest single-day gain in two years. It is expected that the Trump’s protectionist stance benefit domestic producers, as higher tariffs on imports increase costs for foreign competitors, giving companies American companies small caps a competitive advantage.
2. Russian assets. Markets are betting on a possible relaxation of US sanctions Russiawhich has driven the index of the Moscow Stock Exchange (MOEX) to rise 3.3%, surpassing their European counterparts. Russian energy giant Gazprom rose 4%, while Sberbank, a major Russian financial institution, rose more than 3%.
3. Tesla.Tesla shares up 4% in premarket trading, as the company appears set to benefit from Trump’s renewed pressure to raise tariffs on Chinese and European electric vehicles. He Tesla CEO Elon Muska strong Trump supporter, was recognized in Trump’s victory speech, reinforcing expectations that Tesla could be protected from international competition under a more protectionist US administration.
4. Bitcoin. Trump’s support for deregulation of financial markets, including cryptocurrencies, made bitcoin rise almost 8% overnight, reaching a new all-time high of $75,000 (€69,000). In late October, Trump declared his intention to end “Kamala’s war on cryptocurrencies,” signaling a more favorable regulatory environment for digital assets under his administration.
5. American banks. Major US banks, including Wells Fargo, Citigroup and Bank of America, rose about 8% in pre-market trading. With Trump’s policies expected to boost business revenues and widen interest margins, Wall Street banks They anticipate solid earnings prospects. JPMorgan and Morgan Stanley also posted gains of around 7% each.

Five market losers as Trump prevails as president in the US elections

1. Green energy stocks.Renewable Energy Stocks Take a Significant Hitas Trump’s policies are expected to reduce subsidies for green initiatives. First Solar shares fell 12%, while Enphase Energy and NextEra Energy fell 10% and 8%, respectively, reflecting market concerns about declining federal support for the sector.
2. Chinese equities. The chinese exporters They face higher US tariffs under Trump’s protectionist trade policies, with a potential 60% tariff on goods imported from China. As a result, Hong Kong’s Hang Seng Index fell 2.6%, and BYD, China’s largest electric vehicle maker, saw its shares fall 3.6%.
3. Euro. Economists expect the dollar to strengthen as Trump’s policies could fuel inflation, prompting the Federal Reserve to adopt a tighter monetary policy. The euro fell 1.7% on Wednesdaymarking its biggest one-day drop since the Covid-19-induced sell-off in March 2020, as investors flocked to the dollar for safety.
4. US Treasury Bonds The Trump administration’s fiscal plans will likely increase the US national debt by $7.75 trillion (€7.1tn) by 2035, raising the debt-to-GDP ratio to 143%, according to the Committee for a Responsible Federal Budget. On Wednesday, the 10-year Treasury bond yield rose more than 10 basis pointsto almost 4.5%, reflecting the increase in financing needs and the resulting downward pressure on the value of Treasury assets.
5. German car manufacturers. Expectations of increased US tariffs on imported cars weighed heavily on German car manufacturers. Porsche, BMW, Mercedes and Volkswagen saw their shares fall 6.5%, 6.4%, 5% and 4.9%, respectively, amid fears that Trump’s trade policies could further erode profitability in an already challenging market for European car manufacturers.