The winners with Donald Trump’s victory
1. Small caps
A key aspect of your agenda 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.
This point benefited Russell 2000 index, which follows US small cap companies. This index rose more than 6% and marked its biggest single-day gain in two years. Trump’s protectionist stance is expected to benefit the national producersas higher tariffs on imports raise costs for foreign competitors, giving U.S. small-cap companies a competitive advantage.
2. Russia
Markets are betting on a possible relaxation of US sanctions on Russia, which has driven the Moscow Stock Exchange index (MOEX) to rise 3.3%, outperforming its European counterparts. Russian energy giant Gazprom rose 4%, while Sberbank, a major Russian financial institution, rose more than 3%.
3. Elon Musk
Tesla shares rose more than 14% as the company looks set to benefit from the renewed Trump pressure to increase tariffs on Chinese electric vehicles and Europeans. Tesla CEO Elon Musk, a 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.
Dogecoin and Shiba Inu, the two altcoins linked to Elon Musk, also rose in the cryptocurrency market, around 18%.
4. The crypto market
Trump’s support for the deregulation of financial markets, including cryptocurrencies, drove bitcoin up, reaching a new all-time high of $76,000. 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. US banks
Major U.S. 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 anticipate strong profit prospects. JPMorgan and Morgan Stanley also posted gains of around 7% each.
6. US energy companies
According to Jorge Ángel Harker, international markets analyst at Adcap, “those who will be big winners will also be the American oil companies. They will find a much friendlier environment from the legal point of view, from the to be able to explore and to be able to carry out their businesses. Companies linked to US nuclear energy and mining also join in.
The losers with Donald Trump’s victory
1. Foreign policy
Trump’s stance on protectionism and taking care of public accounts could lead to a reduction in financial and military support for Ukraine, a departure from the Biden administration’s approach, while reaffirming strong support for Israel.
As for China, Trump promised an increase in tariffs for trade with China, so there may be an escalation of the trade war, which would make him one of the losers.
2. Renewable Energy Stocks
Renewable energy stocks took a significant hit as 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.
3. Chinese equities
Chinese exporters face higher US tariffs under Trump’s protectionist trade policies, with a potential 60% tariff on goods imported from China. As a result, the index Hong Kong’s Hang Seng fell 2.6%, and BYD, China’s largest electric vehicle maker, saw its shares drop 3.6%.
4. 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 Wednesday, marking its biggest one-day drop since the Covid-19-induced sell-off. in March 2020, as investors flocked to the dollar for safety.
5. 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 yield on the 10-year Treasury bond rose more than 10 basis points, to almost 4.5%, reflecting increased funding needs and consequent downward pressure on the value of Treasury assets.
6. German car manufacturers
Expectations of an increase in 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.
7. Jerome Powell
Trump was a critic of Jerome Powell. He said the Fed’s work was mediocre at best. There may be expectations about who your replacement will be.
Source: Ambito
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