How global markets reacted to Trump’s victory

Financial markets across the globe reacted to Donald Trump’s victory in the US presidential election in different ways.

Asian markets reacted quite bearishly, as investors pondered the future of Asian markets, considering Trump’s rhetoric about cutting importation from China.

As of 3.21 pm West African Time, the S&P 500 Index Futures appreciated by 2 percent, reaching its best-ever level, as investors bet on increased American manufacturing under a Trump presidency. One notable stock was Elon Musk’s Tesla, which saw a significant surge in its share price during after-hours trading.

Pre-market data indicated Tesla’s share price reached $287, marking a 52-week high. According to market data from Investing.com, the NASDAQ Composite Index also rose by 1.43 percent in pre-trading.

Donald Trump’s company, Trump Media and Technology Group, the corporation behind Truth Social also boomed one day after the election. Pre-market data showed that the stock appreciated by 10.9 percent, even as its share price declined massively in the days leading up to the election.

According to Eric Balchunas, a senior ETF analyst with Bloomberg, the bullish move in the American market was not unforeseen.

He noted in a post on X, “NO FEAR: ETF Investors (are) shunning all hedges (VIX, Inverse Equity, Gold, Cash) while pouring cash into stocks heading into election day.”

He then noted in a different post, “ETF investors were rewarded for the umpteenth time for ignoring dramatic headlines and even their own fears and ploughed $21 billion into cheap equity ETFs the week before elections, with $6 billion of it coming day before the election.”

Read also: The rise and return of Donald Trump, unorthodox US president

In Asia, the story was quite different, as the Hong Kong Stock Exchange closed on November 6 with a 2.23 percent decline, with Futures data showing a further decline ahead of the market’s opening on November 7.

Mainland China’s Shanghai Stock Exchange closed with marginal 0.1 decline during the day. However, Japan’s market closed at its best level since October 15, with the Nikkei 225 appreciating by 2.61 percent on November 6.

In Europe, the trading atmosphere was pretty much drab as the excitement in the American markets was not extended to the UK. Data from the LSE showed that FTSE 100 moved by less than 0.1 percentage point. The French market assessed through the CAC 40 Index was bearish, as the index declined by 0.22 percent during the day.

African stock markets, however, were excluded from the global market frenzy, as the Nigerian Exchange (NGX) posted a 0.3 percent increase on Wednesday. The market closed with an All-Share Index of 96,567.24 as it continued its bearish trend, which began on October 25.

The Johannesburg Stock Exchange recorded a 1.55 percent decline during the day, though the market’s bearish turn was attributed more to a retracement following three consecutive days of gains than to the impact of Trump’s victory.

Cryptos hitting all-time high

The crypto market reacted with the most excitement to Trump’s victory, considering the former President’s position during the campaign. Bitcoin (BTC) hit the all-time high of $75,000 on Wednesday, settling around the $74,000 mark.

Ethereum also appreciated by 5.56 percent to bounce back to the $2,600 position. Solana appreciated, hitting the $185 mark, its highest price level since February 2024.