Fox News and Reuters have declared Donald Trump the winner of the US presidential election, and he has already delivered a victory speech, although a final result is still pending. The news has brought joy to the stock market, especially in the US, where Wall Street futures are up by about 2%. American bond yields and the dollar have also seen a noticeable uptick on the news. The US ten-year yield has risen by over ten basis points to 4.4%, while the dollar has strengthened by approximately 15 cents against the krona, reaching 10.85 kronor.
The price of Bitcoin has surged by 8% and surpassed $75,000 for the first time this morning.
The Stockholm Stock Exchange is also responding positively to the news. In early trading, the benchmark OMXS30 index is up by 1.6%, with cyclical industrial companies leading the gains and the real estate sector lagging behind. Companies like ABB, Atlas Copco, Saab, Hexagon, and Sandvik are all up by around 2.5-3.5%. Analysts had previously pointed out that Trump’s promised stimulus measures could boost the economy but also drive up inflation and interest rates.
“Interest rate-sensitive sectors like real estate and Swedish small companies may trade weakly in the coming days, while cyclical sectors should benefit, in line with the pattern we have seen earlier this fall,” says Jon Arnell, Chief Investment Officer at von Euler & Partners.
Among the losers on the Stockholm Stock Exchange are several companies that had previously benefited from Joe Biden’s green energy initiatives. Nibe is down by 4% and Beijer Ref is down by 1%. Volvo Cars has been identified as a loser due to potential US tariffs and is down by almost 5%.
In Asia, reactions were mixed during the morning.