Michael Kramer
Michael Kramer highlights the near-term levels to watch across US stock indices, FX pairs and commodities following Donald Trump’s victory in the presidential election. The so-called Trump trade drove sharp overnight moves across financial markets as investors reacted to the breaking news. Futures on the Dow Jones surged more than 1,200 points or about 2.8%, S&P 500 futures rose 2% and Nasdaq 100 futures increased 1.3%. The small-cap Russell 2000 futures jumped 4%.
Trump’s win also has implications for the US dollar and government bonds. The president-elect’s proposed tariffs on certain imports could fuel inflation, which may mean that US interest rates stay higher for longer. That would make dollar deposits more attractive, which is boosting the US dollar against other major currencies. At the same time, Trump’s proposed tax cuts could be funded by increased government borrowing, which is driving up the yield on 10-year Treasury notes.
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This video is for general information only and is not intended to provide trading or investment advice or personal recommendations. Any information relating to past performance of an investment does not necessarily guarantee future performance. CMC shall not be responsible for any loss that you incur, either directly or indirectly, arising from any investment based on any information in this video. Please remember spread betting and trading CFDs carries significant risks and may not be suitable for all investors.