US Elections Boost Market Morale: US Stock Markets and Cryptocurrencies Rise
The recent US elections have had a significant impact on the financial markets, with both stock markets and cryptocurrencies experiencing a surge in value. The uncertainty surrounding the outcome of the presidential election has led to a boost in market morale, as investors react to the potential changes in economic policies and regulations under a new administration.
**Stock Market Reactions**
Following the initial results of the US elections, Asian markets showed a mixed response. While Japan’s market reacted positively, with the Dow Jones index rising more than 350 points to reach 42,917 points, China sent mixed signals. The S&P 500 index also experienced a sharp increase, reaching 5,866 points, and the Nasdaq index rose to 20,527 points.
**Expert Analysis**
Strategist Ridvan Baştürk shared his insights on the impact of the US elections on the market. He emphasized the positive outlook for the dollar and risky assets under Trump’s leadership, noting potential risks related to oil prices. Baştürk highlighted Trump’s unpredictable nature and his tendency to influence markets positively, especially through his business-oriented approach.
According to Baştürk, Trump’s previous confrontations with China and his focus on economic warfare may continue in the future. He also suggested that Trump’s close ties with Elon Musk could bring attention to the cryptocurrency market. Baştürk predicted that Trump’s influence on the Middle East could be significant, although direct impacts on Turkey might not be immediate.
**Federal Reserve Interest Rates**
As analysts await crucial election results in the US, uncertainties remain about the future of the markets. The distribution of power in the presidency and Congress could have a significant impact on the markets, especially considering potential changes in spending and tax policies. Investors are closely monitoring the Federal Reserve’s upcoming interest rate decision, scheduled to be announced on Thursday.
**Cryptocurrency Rally**
The surge in cryptocurrencies following the US elections reflects Trump’s positive stance on digital assets. The leading cryptocurrency, Bitcoin, surpassed $75,000, setting a new historical record. Bitcoin’s rally triggered a similar response in altcoins, with Ethereum showing significant gains. Ethereum surged from $2,401 to $2,638, following Bitcoin’s upward trend.
**Dollar Index Rally**
The US dollar index reacted positively to the election results, reaching 105.191. The index’s 1.6% increase from the previous day indicates a strong performance in response to the election outcome.
**US 10-Year Treasury Yields Rise**
US 10-year Treasury yields responded positively to the election results, reaching 4.47. The upward trend continued to 4.40 during the morning session, reflecting the market’s optimism.
**Tesla and Trump Company Stocks Rise**
Former President Trump’s media company, Trump Media & Technology Group, saw a 17% increase in its stock value. Additionally, Elon Musk’s support for Trump led to a more than 4% increase in Tesla’s stock value.
**Oil Market Pressure**
Before the election results, the strengthening US dollar against other currencies contributed to a decline in oil prices. Brent crude oil, which rose to $76.10, closed the day at $75.46 per barrel. Currently, Brent crude is trading at around $73.98, while West Texas Intermediate (WTI) crude oil is at $70.43 per barrel.
**Gold Performance**
Gold prices experienced fluctuations, with the gram of gold starting the day at $2,995. Following a slight increase, gold closed at $3,026. The current price stands at $2,995, with quarter gold at $5,090 and Republic gold at $20,270. The ounce of gold is currently trading at $2,718.
**Euro Selling Pressure**
The Euro faced selling pressure against the dollar, dropping over 1.7% to reach a four-month low of 1.0703 against the dollar.
The market’s response to the US elections underscores the importance of political events in shaping financial landscapes. As investors navigate the uncertainties of the post-election period, the impact of Trump’s policies and market influence remains a key factor to watch. The dynamic shifts in various asset classes highlight the need for strategic investment decisions in a rapidly changing economic environment.
