President Trump: Wall Street Breaks Records, Chinese Markets in Bad Shape

Wall Street celebrates Donald Trump’s victory in the US presidential election. New York’s major stock indexes actually rose to all-time highs after news of a Republican election triumph. Investors expect expansionary fiscal policy and deregulation. A confidence that is also fueled by the Republicans winning the Senate, which should guarantee good leeway with control of at least one chamber. US Treasury bond yields, bitcoin, which is at record levels, and the dollar are benefiting from this climate of confidence.

The opposite results were seen in China, where there was a weakening of the local currency (yuan) and a sharp fall in stock markets. There are fears that Donald Trump’s new presidency could increase trade tensions at a time when relations between the two countries are in serious crisis. Trump is expected to raise tariffs on goods coming from China as part of his announced attempt to revitalize US industry. Thus, the Hang Seng Index in Hong Kong closed at minus 2.23% to 20,538.38 points. Technology stocks were particularly hard hit, with Lenovo down 4.6%, Jd.com down 4.2%, and Alibaba down 4.1%.