Stock market today: Stocks, bond yields and bitcoin advance as US election brings Republican gains

HONG KONG (AP) — Share prices and enslaved yields surged Wednesday arsenic nan Republican statement gained power of nan Senate and erstwhile President Donald Trump closed successful connected nan 270 electoral votes needed to return him to nan White House.

The afloat results of Tuesday’s election whitethorn not beryllium known for days arsenic officials count each nan votes, but investors already were repositioning successful anticipation of sweeping gains by nan Republicans, who took power of nan Senate for nan first clip successful 4 years. The results of nan House elections were not yet finalized.

Trump won nan battleground authorities of Georgia, a Republican stronghold that had voted for Democrats successful 2020. A triumph successful North Carolina helped Trump constrictive Vice President Kamala Harris’ pathways to victory. Clinching Pennsylvania took him wrong 3 electoral votes of nan 270 votes needed to go nan adjacent president.

Auguring gains for U.S. markets connected Wednesday, nan early for nan S&P 500 gained 1.9% and that for nan Dow Jones Industrial Average was up 2.2%. The Nasdaq composite early was 1.7% higher.

The value of bitcoin jumped astir 8% to a grounds $75,345.00, arsenic investors stake connected a triumph for Trump, who has pledged support for cryptocurrencies. It later fell backmost to $74,355.00.

Bond yields besides surged, pinch nan output connected nan 10-year Treasury climbing to 4.4% from 4.28% connected Tuesday.

“The markets are scrambling to fig retired what happens next, but for nan clip being, nan marketplace is pricing successful a higher maturation and higher ostentation outlook,” Peter Esho of Esho Capital said successful a commentary.

In early European trading, Germany’s DAX climbed 0.6% to 19,377.79, while nan CAC 40 successful Paris precocious 0.7% to 7,460.26. Britain’s FTSE 100 was up 0.7% astatine 8,233.12.

Markets worldwide person been fixated connected what nan predetermination will mean for U.S. economic, monetary and waste and acquisition policy, arsenic good arsenic geopolitics. A divided successful Congress betwixt governmental parties would complicate policymaking, and a White House headed by Trump could person acold reaching ramifications fixed his support for crisp increases successful tariffs, particularly connected imports from China.

The wide U.S. banal marketplace has historically tended to emergence regardless of which statement wins nan White House, moreover if each party’s policies tin thief and wounded different industries’ profits.

Since 1945, nan S&P 500 has risen successful 73% of nan years wherever a Democrat was president and 70% of nan years erstwhile a Republican was nan nation’s main executive, according to Sam Stovall, main finance strategist astatine CFRA.

The S&P 500 has risen astir 70% since nan 2020 predetermination brought President Joe Biden into office. It rallied to records arsenic nan U.S. system bounced backmost from nan COVID-19 pandemic and managed to debar a recession contempt a jump successful inflation.

In Asian stock trading Wednesday, Japan’s Nikkei 225 scale gained 2.6% to 39,480.67, while nan Kospi successful Seoul shed 0.9% to 2,553.90.

Australia’s S&P/ASX 200 roseate 0.8% to 8,199.50.

Hong Kong’s Hang Seng scale fell 2.3% to 20,525.06, ending a three-day rally, arsenic investors sought safe-haven assets amid nan uncertainties surrounding nan U.S. election. The Hang Seng Tech Index slipped 2.5%, while nan Shanghai Composite scale edged 0.1% lower, to 3,383.81.

Trump has vowed to sharply raise tariffs connected imports from China and different countries, darkening nan outlook for Chinese exporters astatine a clip erstwhile Beijing has relied heavy connected ramping up manufacturing to effort to revive its slowing economy.

“Positive outcomes for Harris are expected to boost Asian assets, while Trump gains whitethorn exert downward pressure,” Anderson Alves of ActivTrades said successful a commentary.

Chinese markets person been among nan astir progressive successful nan region this week arsenic leaders clasp a gathering of nan Standing Committee of nan National People’s Congress, nan country’s legislature.

The gathering is expected to present much moves to thief spur faster economical maturation and resoluteness mounting levels of section authorities debt. On Tuesday, upbeat comments by Premier Li Qiang astir nan imaginable for some fiscal and monetary policies helped assistance stock benchmarks successful Hong Kong and Shanghai by much than 2%. Li besides expressed assurance that China will attain its maturation target of astir 5% this year.

On Tuesday, U.S. stocks precocious arsenic voters headed to nan polls and caller information showed nan system remains healthy. The S&P 500 roseate 1.2% and nan Dow industrials climbed 1%. The Nasdaq composite gained 1.4%.

Later this week, nan Federal Reserve is owed to make a determination connected liking rates. The wide anticipation is for nan U.S. cardinal slope to trim its main liking complaint for a 2nd clip and apt again successful December.

In different dealings early Wednesday, U.S. benchmark crude lipid mislaid 90 cents to $71.09 per barrel. Brent crude, nan world standard, gave up $1.00 cents to $74.53 per barrel.

A Trump triumph was expected to bolster nan worth of nan dollar, which surged to 154.02 Japanese yen from 151.62 yen precocious Tuesday.

The euro slipped to $1.0741 from $1.0931.