Global Markets React to Trump’s Presidency
European Markets Bounce Back
European markets kicked off Wednesday on a positive note, with Germany’s DAX rising 0.2% to 19,067.59, France’s CAC 40 adding 0.2% to 7,242.33, and the UK’s FTSE 100 inching up 0.1% to 8,035.44. Meanwhile, futures for the S&P 500 and Dow Jones Industrial Average were up 0.2% and 0.3%, respectively.
Asian Markets Feel the Pinch
In contrast, Asian stocks followed Wall Street’s lead, tumbling lower as the momentum behind the “Trump trade” began to wane. Japan’s benchmark Nikkei 225 plummeted 1.7% to 38,721.66, largely due to a surge in wholesale inflation, which reached its highest level since July last year. South Korea’s Kospi suffered a 2.6% loss to 2,417.08, with Samsung Electronics shares plummeting 4.5% to their lowest level in over four years.
Mixed Performance in Other Markets
Hong Kong’s Hang Seng dropped for a fourth consecutive day, slipping 0.1% to 19,823.45. However, the Shanghai Composite bucked the trend, gaining 0.5% to 3,439.28. Australia’s S&P/ASX 200 fell 0.8% to 8,193.40.
US Markets Take a Breather
On Tuesday, the S&P 500 slipped 0.3% to 5,983.99, a day after setting its latest all-time high. The Dow Jones Industrial Average dropped 0.9% to 43,910.98, and the Nasdaq composite fell 0.1% to 19,281.40. The Russell 2000 index of smaller companies led the decline, tumbling 1.8%.
Treasury Yields on the Rise
A jump in Treasury yields also added pressure on the stock market, as trading of U.S. government bonds resumed following Monday’s Veterans Day holiday. The yield on the 10-year Treasury jumped to 4.42% on Tuesday from 4.31% late Friday, which is a notable move for the bond market.
Cryptocurrency and Energy Markets
In the crypto market, bitcoin soared to another record before pulling back, reaching as high as $89,995 according to CoinDesk. In energy trading, benchmark U.S. crude gained 3 cents to $68.15 a barrel, while Brent crude, the international standard, fell 6 cents to $71.83 a barrel.
Currency Trading
In currency trading, the U.S. dollar edged up to 155.09 Japanese yen from 154.51 yen. The euro cost $1.0607, down from $1.0625.
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