European markets opened higher on Wednesday, while Asian markets saw declines, reflecting the cooling momentum of the “Trump trade” that i...
European markets opened higher on Wednesday, while Asian markets saw declines, reflecting the cooling momentum of the “Trump trade” that initially surged after Donald Trump’s presidential victory.
In Europe, Germany’s DAX inched up 0.2% to 19,067.59, France’s CAC 40 rose 0.2% to 7,242.33, and the UK’s FTSE 100 edged up 0.1% to 8,035.44. Futures for the S&P 500 and Dow Jones also showed slight gains, rising 0.2% and 0.3%, respectively.
However, in Asia, Japan’s Nikkei 225 fell 1.7% to 38,721.66, driven by a 3.4% year-on-year rise in wholesale inflation for October, a result of the weakening yen. South Korea’s Kospi dropped 2.6% to 2,417.08, with Samsung Electronics hitting a four-year low after a 4.5% slide. Hong Kong’s Hang Seng index declined 0.1% to 19,823.45, while China’s Shanghai Composite index saw a modest 0.5% gain to 3,439.28.
The U.S. stock market had seen a recent surge on expectations of Trump’s pro-growth, lower-tax policies. However, market gains cooled Tuesday, with the Russell 2000 index of smaller companies leading the decline, down 1.8%. Tesla’s shares also dropped 6.1%, its first loss since the election.
Bond yields have surged, with the 10-year Treasury yield rising to 4.42%, as investors assess the impact of Trump’s proposed tariffs and inflation-driving policies. The U.S. economy’s resilience has supported these higher yields, amid the Federal Reserve’s ongoing interest rate cuts aimed at maintaining a stable job market.
Meanwhile, bitcoin reached a new high, briefly touching $89,995 before settling near $89,500, as Trump signaled a favorable stance toward cryptocurrencies.
In energy markets, U.S. crude rose slightly to $68.15 per barrel, while Brent crude dipped to $71.83. The dollar strengthened against the yen and the euro, indicating continued volatility as markets respond to global policy changes and economic indicators.
No comments