NEW YORK (dpa-AFX) - Donald Trump's victory in the US presidential election has caused some sharp price movements on the financial markets. Concerns about a further increase in debt caused the prices of US government bonds to plummet. The US dollar, on the other hand, rose significantly. Cryptocurrencies such as Bitcoin benefited greatly from the election result in the US.

An overview of developments on the stock markets:

US government bonds

There were strong price reactions in US government bonds, which came under heavy pressure following Trump's election victory. In turn, yields rose significantly. Yields on ten-year bonds rose by 0.17 percentage points in the morning, reaching their highest level since July at 4.46%. There are fears of a higher budget deficit due to the tax cuts announced by Trump. Economists also expect higher inflation in the US, which argues for fewer interest rate cuts by the Fed. This is causing yields on US bonds to rise.

US dollar

Early on Wednesday night, the dollar reacted to Trump's election victory, which was already becoming apparent at the time, with significant gains. The exchange rate rose sharply against the other leading global currencies, the Japanese yen and the euro. The euro slipped to 1.0701 dollars, its lowest level since the end of June. The previous day, the exchange rate was still at more than 1.09 dollars.

Bitcoin

The oldest and best-known cryptocurrency rose to the highest level in its history on Wednesday night. The price climbed above the 75,000 dollar mark at times. Bitcoin was not quite able to maintain this level, but at just under 74,000 dollars it was still significantly higher than on Tuesday evening. President-elect Trump has shown himself to be a supporter of cryptocurrencies in recent months.

US equities

Significant gains are emerging on the US equity markets. Futures on the key Dow Jones Industrial, S&P 500 and Nasdaq 100 indices rose significantly on Wednesday afternoon. The US stock markets were thus able to resume their record run after a short period of weakness in recent days.

German and European stock markets

On the Frankfurt stock exchange, Trump's triumph led to significant gains in the meantime. However, the Dax lost a large part of its gains around midday and only rose by 0.3 percent to 19,320 points. "Once again, it was probably the economy that essentially decided the outcome of the US presidential election," suspects Robert Greil, chief strategist at Merck Finck bank. Many Americans have complained about the sharp rise in prices - even if the after-effects of the Covid pandemic were more to blame than the administration of Joe Biden, who is still in office. However, "this obviously didn't play a major role for many citizens at the ballot box", says Greil.

The MDax of mid-cap blue chips recently fell slightly. The EuroStoxx 50, the leading index in the eurozone, gained 0.2 percent.

Tesla share

For Tesla investors, Trump's election victory is a day of celebration - after all, Elon Musk, major shareholder and head of the e-car manufacturer, is a big supporter of Donald Trump. He was praised extensively during Trump's victory speech, albeit for the successes of his space travel company SpaceX. Tesla shares rose by 15 percent in advance - in absolute terms, that's almost 120 billion dollars. Musk's assets, which are currently valued at around 260 billion dollars by the Bloomberg news agency, would thus continue to rise.

German car shares

Unlike Tesla, the shares of German manufacturers came under pressure. In addition to weak BMW figures, concerns about possible punitive tariffs or other measures by Trump against German manufacturers weighed on valuations. At midday, Mercedes-Benz, Volkswagen, BMW and Porsche AG were at the bottom of the Dax with losses of between four and six percent.

Asian stock markets

In Asia, Trump's probable victory triggered different reactions. While Japan saw an upward trend, Chinese stock markets recorded losses. The Hang Seng of the special administrative region fell by just over two percent. "China is Trump's favorite target for higher tariffs," said fund manager Thomas Altmann from asset manager QC Partners. The reaction was not quite as strong as in Hong Kong for the CSI 300, which includes the most important Chinese mainland stocks and lost half a percent. In Japan, shares benefited from the falling yen, which is supporting the country's export-oriented economy. Japan's leading index, the Nikkei 225, rose by 2.6 percent.

Crude oil

The oil market suffered losses of just over one percent as a result of the US election result - mainly because the dollar strengthened. As crude oil is generally traded in dollars on the global market, gains in the US currency make the commodity more expensive in countries outside the dollar zone. The market also pointed to the possible effects of the election.

German bonds

German government bond prices have moved little following Donald Trump's victory in the US presidential election. The benchmark Euro Bund futures contract fell by 0.20 percent to 131.53 points at midday. "America has voted without any disruptions and a result has been determined - that is a reason for relief for the economy and financial markets for the time being," commented Dekabank chief economist Ulrich Kater. The economic forecasts do not need to be rewritten now. "But the real economic consequences of a thorough implementation of the Trump agenda will only become apparent over many years."

Renewable energy shares

Trump is known as a supporter of conventional energy sources and had already announced as a presidential candidate that he would demand as much oil as possible if he were elected. He is considered an opponent of climate policy. Demands for green energy could be scaled back under Trump. This also weighed on the sector in Germany. The shares of wind turbine manufacturer Nordex, which is listed on the MDax, fell by around six percent at midday; SMA Solar was recently down ten percent.

Gold price

The price of gold fell after the election victory. The price of a troy ounce (approx. 31.1 grams) was trading at 2,714 dollars on the London Stock Exchange at midday, around 29 dollars lower than the previous day. At times, the price fell to 2701 dollars. Market observers pointed to the rising dollar exchange rate, which is making gold more expensive on the world market and curbing demand.

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