Wall Street from record high after Trump's victory, but Europe does not celebrate. Spread rises to 132

(Il Sole 24 Ore Radiocor) - Trump's policies spooked theEuropean stock exchanges, which closed in the red. After the sigh of relief for the Republican candidate's en plain, which swept away fears of a political stalemate, the markets of the Old Continent reversed course. Thus, Milan (1.54%) ended strongly down, dragged down by banks and utilities. Only Madrid (-2.9%) fared worse, weighed down by the exposure in Mexico and South America of some of its companies, including Bbva and Sabadell. However, Paris (-0.51%), Frankfurt (-1.14%) and Amsterdam (-0.83%) also posted significant losses. London (-0.15%), which had managed to limit losses for most of the session, also went into negative territory at the end. While Wall Street - with the main indices at highs - is celebrating the deregulation policies for banks and oil & gas promised by the taycoon in the election campaign, Europe is looking at the same measures with concern. These measures could lead to increased competition for European companies, especially banks, which are subject to stricter regulations. Moreover, the prospect of a trade war, with high tariffs, risks weakening the European economy. This, explains one trader, together with the fragility of the euro, could force the ECB to accelerate its rate-cutting path, chasing the Federal Reserve. Unless the latter takes a break, given the likely rise in inflation.

Enthusiasm on Wall Street after Donald Trump's victory in the US presidential election. The Dow Jones closed up 3.57 per cent at 43,728.88 points, the Nasdaq advanced 2.95 per cent to 18,983.46 points, and the S&P advanced 2.53 per cent to 5,928.91 points.

Investors celebrate a clear result, which avoids delays, controversies and legal battles, much feared on the eve. Trump will probably also have the entire Congress on his side: the Republicans should retainthe majority in the House and win back the majority in the Senate. The bitcoin updated its record, rising about 10% to $75,000, and the US dollar - expected to rise by investors in the event of Trump's victory - strengthened, rising to its highest level in five months. Tesla's stock rallied after its CEO, Elon Musk, openly campaigned for Trump, who thanked and praised him in his speech after the victory. The yield on the 10-year Treasury bond also rose to around 4.45%; investors believe that Trump's proposed tax cuts and other spending plans will increase the fiscal deficit and that an eventual trade war against China and the European Union could drive up inflation again.

The banking industry is emerging asa winner from the election. The prospect of looser regulations, tax cuts, rising inflation, and higher interest rates is driving major US financial institutions, investment banks, and even regional banks: JPMorgan, Bank Of America and Citigroup are all up, Wells Fargo & Co , Goldman Sachs Group and Morgan Stanley gained, PNC Financial Services and Capital One. On energy, stocks of oil giants favoured (Chevron) as Trump has already promised to increase oil extraction, while renewable energy companies suffered. With Trump, the battle against companies accused of monopolies and against mergers of large groups will find less space: for this reason, the stocks of Spirit, Frontier and JetBlue in the airline sector, of Kroger and Albertson in retail, of Capri and Tapestry in luxury, and of Live Nation in entertainment are up strongly. For the same reason, Big Tech stocks were up sharply: Apple, Alphabet Class A and Amazon, with the exception of Meta Platforms. Nvidia Corp gains and remains in the lead, ahead of Apple, as themost capitalised company in the world.

Volatile session for Trump Media's stock. In premarket, it had gained more than 50 per cent following Donald Trump's victory in the US presidential election. The stock is rallying despite a quarterly report released as a surprise after the markets closed on the eve of trading, which showed a loss for the company of $19.2 million in the third quarter. Trump Media owns the Truth Social platform and is controlled by Trump. In the previous five sessions, the stock had lost over 34%, with Democratic candidate Kamala Harris appearing to be recovering in the polls. Over the past month, however, the share price has risen by over 105%.