On November 6th, former President Trump, the Republican presidential candidate, announced his victory in the 2024 US presidential election.
The latest global asset and US stock market performance is of great concern. On Wednesday Eastern Time, the US stock market opened high and rose, with all three major indexes closing at new historical highs. The prices of gold and silver plummeted, while the US dollar index surged.
Harris: Accept losing the election result
Biden congratulates Trump on his election victory
According to CCTV News, on the afternoon of November 6th local time, Harris, the current Vice President of the United States and Democratic presidential candidate, delivered a speech at Howard University in Washington D.C.
Harris stated that she accepts the outcome of losing the election and will assist Trump and his team in completing the power transition peacefully.
Earlier that day, Harris congratulated Trump on his victory in Mandarin.
On November 6th local time, US President Biden called Republican presidential candidate and former President Trump to congratulate him on winning the 2024 US presidential election and invited him to the White House to discuss the handover of power. The White House has stated that staff will coordinate dates in the 'near future'.
It is reported that Biden plans to deliver a speech on the election results on November 7th.
In addition, Biden has also spoken with current Vice President of the United States and Democratic presidential candidate Harris to affirm the work of his campaign team.
According to calculations and reports from multiple US media outlets on the 6th, in the 2024 US presidential election, Trump's electoral votes have exceeded the 270 required for election. Trump delivered his victory speech at the Palm Beach County Convention Center in Florida in the early morning of the 6th.
According to Xinhua News Agency, American election analysts believe that voters' anxiety about economic issues such as inflation and concerns about illegal immigration are important factors in Trump's election victory. In addition, Trump's support among African American and Latino voters has increased, which is also one of the reasons for his victory.
After this victory, Trump will become the second president in American history, after Democrat Stephen Cleveland in 1892, to run for three consecutive terms and be re elected after losing re-election. Trump, who is 78 years old, will become the oldest president in American history when he takes office in January next year.
The three major US stock indices hit a historic high
Tesla's market value surged by 850 billion yuan
On November 6th local time, the US stock market closed sharply higher that day, with all three major indices reaching historic highs.
The Dow Jones Industrial Average closed up 1508 points to a historic high, up about 3.6%. The last time the index rose more than 1000 points in a single day was in November 2022; The S&P 500 index also hit a historic high, rising 2.5%; The Nasdaq Composite Index rose 3% to a historic high.
Popular technology stocks saw a general increase, with Tesla rising over 14% and its market value increasing by approximately $119 billion overnight. Elon Musk's net worth skyrocketed by $20.9 billion, securing his position as the world's richest person. Nvidia, Amazon, and Netflix all hit new closing highs. Trump concept stocks rose, with Trump Media Technology Group up nearly 6% after being suspended due to stock price volatility. Chinese concept stocks generally fell.
The US dollar index rose nearly 1.7%, while non US dollar currencies such as the euro, yen, and yuan fell sharply. Bitcoin has surpassed $75000 per coin, setting a new historical high.
The prices of gold and silver have plummeted
The Federal Reserve will announce its interest rate decision
Gold and silver have plummeted. London gold even fell below $2700, a significant drop of 3%; London silver fell 4.56%.
According to Securities Times, SP Angel analysts said that the surge in the US dollar and US Treasury bonds due to the election results has weakened the attractiveness of gold, reflecting market concerns about the possible inflation policies of the Trump administration. Trump has previously talked about plans to reduce immigration, impose widespread tariffs, and cut taxes, all of which could push up inflation.
In addition, the gold price is also affected by the dual effect of capital flowing from gold and other safe haven assets to risky assets such as Bitcoin and stocks. Olay Hansen, head of commodity strategy at Shengbao Bank, said that gold prices will face the risk of increased inflation, which may slow down the pace of the Federal Reserve's interest rate cuts and sustained demand for safe haven assets.
According to media reports, James Kniveton, a senior corporate forex trader at Convera, said, "The US dollar has recently regained a lot of lost ground. With Trump's victory, risk currencies that appreciated before the election, such as the Australian dollar, are now experiencing a pullback, which also puts some pressure on gold
Bank of America Merrill Lynch analysts Aditya Bhave and Shruti Mishra released a report stating that in the future, if Trump takes office and engages in fiscal expansion, the Federal Reserve may raise its expectations for neutral interest rates. In addition, if the Federal Reserve may pause interest rate cuts due to concerns about the impact on inflation and economic growth, it will put some pressure on gold.
Recently, market operations have been quite complex, with a focus on low positions and wait-and-see measures. Previously, the poor employment data in the United States opened up room for policy operations, but with Trump's victory, the magnitude and pace of future interest rate cuts may change. Gold is at a high level, and the possibility of significant fluctuations is high, making it difficult to grasp the direction at the moment, "senior gold investor Lin Rong told reporters.
Affected by the US presidential election and winter time, the Federal Reserve will announce its interest rate decision at 3:00 am Beijing time on Friday, November 8th. As usual, the Federal Reserve held its interest rate meeting on Tuesday and Wednesday, and announced the decision results early Thursday morning Beijing time. However, this time it happened to coincide with the US presidential election voting, so the Federal Reserve's interest rate meeting was postponed for one day.
Nick Timiraos, the spokesperson for the Federal Reserve, wrote that Fed officials are now facing a question of whether the election results will lead to meaningful changes in economic demand or inflation, requiring different policy paths? Timiraos stated that officials will not change their policy direction until they understand President elect Trump's reform proposals on taxes, tariffs, and immigration. But if the Republican Party also wins control of both houses of Congress, they may start modifying some basic assumptions at the December meeting.