350, 6000, 44000, 88000- Do you know the meanings these numbers represent?
If you are a global market investor and have personally experienced the market trends across asset sectors on Monday, then I believe that at this moment, you have already associated the meanings behind these numbers in your mind.
350 (US dollars) was Tesla's closing price last night - on Monday of this week, this global electric vehicle leader rose another 9%. Since the US presidential election on November 5th, Tesla's stock price has risen by over 39%, and the company's market value has increased by more than $300 billion. As investors believe that Trump's inauguration will bring great benefits to Musk's electric car manufacturer, the sharp shift in market sentiment has quickly generated a snowball effect on the stock's rise.
At 6000 points and 44000 points, it was the first time in the history of the S&P 500 index and the Dow Jones Industrial Average to cross the two latest integer thresholds at the close last night. Trump's victory not only benefits some typical Trump concept stocks, but also has a significant driving effect on the overall US stock market recently. The market expects that the relaxation of tax cuts and financial regulatory policies may further stimulate the "animal spirit" in the market. Lisa Shalett, Chief Investment Officer of Morgan Stanley Wealth Management, wrote in a report on Monday that "the decisive victory of the Republican Party ignited the 'animal spirit', despite high expectations
(The 51st historical closing high of the S&P 500 index this year)
And finally, the number 88000 (US dollars), which is twice as high as 44000, is the latest integer level that Bitcoin broke last night. The support of US President elect Trump for digital assets, along with the support of many members of Congress for the prospects of cryptocurrency, has propelled Bitcoin to break through this integer barrier for the first time. In fact, starting from the election day on November 5th, Bitcoin has already surpassed 14 integer thresholds (measured in thousands of dollars) in just a few trading days.
We continue to see people eager to join the Trump trade as soon as possible, "said Emmanuel Cau, head of equity strategy at Barclays Europe
Mabrouk Chetouane, head of global market strategy at the investment management company of the French foreign trade bank, stated that the performance of cryptocurrencies and other so-called "Trump trades" indicates that people are increasingly expecting the former president to adopt a relaxed regulatory approach during his second term.
He said, "Even if trade protectionism measures are further strengthened, investors are willing to take risks." He was referring to Trump's plan to significantly increase tariffs on US imported goods.
It is worth mentioning that even though the trends in the foreign exchange and bond markets are not as dazzling as the breakthroughs in integer numbers in the aforementioned stock and cryptocurrency markets, Trump's trading in these two huge markets has continued at the beginning of this week.
Trump's decisive victory prompted traders to price the incoming president's promises of tax cuts and tariffs, driving up the US dollar and triggering a sell-off in US government bonds.
The US dollar index closed at 105.51 in the New York session on Monday, up 0.48% in a single day and hitting its highest level since July at 105.70. The euro fell to its lowest level in nearly seven months against the US dollar on Monday, as investors were concerned that the new White House administration might impose tariffs that could harm the eurozone economy. Since Trump won the US presidential election last week and raised concerns about the possibility of tariffs imposed by the new government, non US currencies such as the euro have been declining.
The spot market for treasury bond bonds was closed Monday for Veterans Day. But the futures market still shows some obvious selling pressure. As of 3:30 p.m. Monday New York time, the 10-year US treasury bond bond futures fell by about 11 points, with an implied yield of about 4.35%. If this level is maintained when Asian markets start trading on Tuesday, it means that the yield of 10-year treasury bond bonds will be about 5 basis points higher than the closing price on Friday.
The strategist team of LPL Financial wrote in the report on Monday, "The economic data is good, the Federal Reserve may be too dovish, and the Trump government may release more policy details, which may push up the yield of treasury bond bonds. Only when there is a negative economic accident, the yield will drop significantly from the current level."
Anyway, it can be foreseen that as the Trump team begins to discuss the specific candidates for the cabinet after the election and continues to attract the attention of market participants, the momentum of a series of "Trump deals" may continue for some time in the short term.
Of course, Chris Larkin, head of E * Trade, a platform under Morgan Stanley, also stated that with the US election and further interest rate cuts becoming history, the question is whether bulls can continue to push the market to new highs in the future.
Larkin believes that "in addition to the potential profit taking that may occur after such a strong surge, Wednesday's US inflation data may also determine whether the market can hold on to the gains