Publish: 11:02, 07 Nov, 2024

Equities fluctuate, bitcoin hits record as traders weigh Trump 2.0

Online Desk
Equities fluctuate, bitcoin hits record as traders weigh Trump 2.0
Photo - Collected

Asian equities saw a swing on Thursday, while the dollar held gains and bitcoin triumph a fresh record as markets tried to determine the consequences of a second Donald Trump presidency after he pledged to cut taxes and ramp up tariffs with an eye on China.

The so-called Trump Trade went into overdrive Wednesday as it emerged that the tycoon would return to the White House after beating Democrat Kamala Harris, while his Republican Party gained control of the Senate and looked set to hold onto the House of Representatives, reports BSS.

The decisive win is expected to pave the way for a series of business-friendly measures such as tax cuts and deregulation, though analysts warn that such moves -- along with the pledge to impose duties on imports -- could relight inflation.

The prospect of higher inflationary pressure could complicate matters for Federal Reserve boss Jerome Powell as he tries to guide the economy to a soft landing while bringing prices under control.

The central bank is expected to announce a 25-basis-point interest rate reduction on Thursday, but there are now questions over the chances of another next month, and the outlook for the new year.

"Those discussions might have to wait (until) a subsequent meeting and encompass four issues," said National Australia Bank's Tapas Strickland.

"Does the election result lead to meaningful changes for economic demand or inflation that warrant a different policy path?; Have jitters about job-market deterioration been overstated?; Where is inflation headed?; and What is the right level for rates, anyway?"

Still, economists at Citi wrote in a client note ahead of Election Day: "The December rate cut decision will depend on labor market data and we expect a further softening to lead to a 50-basis-point rate cut."

After a mixed day on Wednesday, Asian stock investors continued to tread carefully.

Tokyo edged down with Hong Kong, Sydney, Seoul, Wellington and Manila, but Shanghai, Singapore and Taipei rose.

That came after a blockbuster day on Wall Street, where all three main indexes hit new highs, led by a 3.6 per cent spike in the Dow.

With Trump expected to once again set his sights on trade, observers said that will be a key issue for Asian governments, and particularly China after Washington and Beijing butted heads on numerous occasions during his first term.

"The primary concern will be around tariffs and trade restrictions, which will have some impact but have been somewhat factored in," said Joshua Crabb and Colin Graham at asset manager Robeco.

"The offset to this will likely be a more aggressive policy response in Asia, both fiscally and monetarily.

"The first indication of this will be stimulus in China, with the (National People's Congress) scheduled to finalise on 8 November."

Traders are awaiting the end on Friday of a Chinese government meeting to hammer out a stimulus for the world's number two economy, with expectations for hundreds of billions of dollars to help local authorities and support for banks to boost lending.

On currency markets, the dollar held its gains against its peers after surging on the back of Trump's victory as rate cut bets are pared back and Treasury yields rise.

Bitcoin touched a new high just above $77,475 on optimism about the outlook for cryptocurrencies after the president-elect said on the campaign trail that he would make the United States the "bitcoin and cryptocurrency capital of the world".

Key figures around 0230 GMT

Tokyo - Nikkei 225: DOWN 0.4 per cent at 39,321.87 (break)

Hong Kong - Hang Seng Index: DOWN 0.1 per cent at 20,525.33

Shanghai - Composite: UP 0.2 per cent at 3,391.22

Dollar/yen: DOWN at 154.40 yen from 154.62 yen on Wednesday

Euro/dollar: DOWN at $1.0727 from $1.0732

Pound/dollar: UP at $1.2889 from $1.2880

Euro/pound: DOWN at 83.23 pence from 83.30 pence

West Texas Intermediate: UP 0.4 per cent at $71.96 per barrel

Brent North Sea Crude: UP 0.5 per cent at $74.29 per barrel

New York - Dow: UP 3.6 per cent at 43,729.93 (close)

London - FTSE 100: DOWN 0.1 per cent at 8,166.68 (close)

Bd-pratidin English/ Fariha Nowshin Chinika

More News
Biden promises 'peaceful' transition in wake of Trump win
Biden promises 'peaceful' transition in wake of Trump win
South Korea hints at providing weapons to Ukraine
South Korea hints at providing weapons to Ukraine
Indonesia's Mount Lewotobi Laki Laki erupts for the second time in a week
Indonesia's Mount Lewotobi Laki Laki erupts for the second time in a week
Israel buys 25 US-made F-15 aircraft for $5.2bn
Israel buys 25 US-made F-15 aircraft for $5.2bn
Which direction will Trump choose on Ukraine, the Middle East, and China?
Which direction will Trump choose on Ukraine, the Middle East, and China?
Biden to address nation after Trump's mighty comeback
Biden to address nation after Trump's mighty comeback
Saudi Arabia leads Arab world in congratulating Trump
Saudi Arabia leads Arab world in congratulating Trump
Iran urges Israel’s suspension from UN General Assembly
Iran urges Israel’s suspension from UN General Assembly
Biden blamed by Harris allies for vice president's major loss
Biden blamed by Harris allies for vice president's major loss
Will judge Trump by his actions on Ukraine: Russia
Will judge Trump by his actions on Ukraine: Russia
IDF claims of killing 60 Hezbollah members
IDF claims of killing 60 Hezbollah members
Israeli strikes kill at least 40 in east Lebanon: Health ministry
Israeli strikes kill at least 40 in east Lebanon: Health ministry
Latest News
Biden promises 'peaceful' transition in wake of Trump win
Biden promises 'peaceful' transition in wake of Trump win

7 hours ago | International

Dengue takes 7 more lives in 24hrs
Dengue takes 7 more lives in 24hrs

8 hours ago | National

Delegation of US Indo-Pacific Command paid a courtesy call on Army Chief
Delegation of US Indo-Pacific Command paid a courtesy call on Army Chief

8 hours ago | National

Rickshaw carrying martyr Nafiz to be preserved at Ganabhaban memorial museum
Rickshaw carrying martyr Nafiz to be preserved at Ganabhaban memorial museum

9 hours ago | National

Forest officials rescue 12 endangered capped langurs in Moheshkhali
Forest officials rescue 12 endangered capped langurs in Moheshkhali

9 hours ago | National

Bangladesh Bank Governor urges patience as it could take time to curb inflation
Bangladesh Bank Governor urges patience as it could take time to curb inflation

10 hours ago | Economy

There will be documentation of money wasted in the name of Mujib Year: CA’s Press Secretary
There will be documentation of money wasted in the name of Mujib Year: CA’s Press Secretary

10 hours ago | National

Arakan Army returns 20 Bangladeshi fishermen taken from Naf River
Arakan Army returns 20 Bangladeshi fishermen taken from Naf River

10 hours ago | National

Touhid sees no major shift in US policy towards Bangladesh under Trump
Touhid sees no major shift in US policy towards Bangladesh under Trump

10 hours ago | National

Local, foreign investors urged to invest in Bangladesh's marine, offshore industry
Local, foreign investors urged to invest in Bangladesh's marine, offshore industry

10 hours ago | City

South Korea hints at providing weapons to Ukraine
South Korea hints at providing weapons to Ukraine

11 hours ago | International

Bury political divisions for greater national interests: Jamaat Ameer Shafiqur Rahman
Bury political divisions for greater national interests: Jamaat Ameer Shafiqur Rahman

11 hours ago | National

British Council launches 3rd ‘Next Generation Bangladesh’ research series
British Council launches 3rd ‘Next Generation Bangladesh’ research series

11 hours ago | City

Inflation in Bangladesh went up in Oct
Inflation in Bangladesh went up in Oct

12 hours ago | Economy

Government prioritizes environmental protection to build a new Bangladesh: Environment Advisor
Government prioritizes environmental protection to build a new Bangladesh: Environment Advisor

12 hours ago | National

Price fall in large-cap drives stocks further down
Price fall in large-cap drives stocks further down

12 hours ago | Economy

Khelafat Majlis nominates 5 for New EC formation
Khelafat Majlis nominates 5 for New EC formation

12 hours ago | National

NBR nominates six officials for C&F Agent attachment
NBR nominates six officials for C&F Agent attachment

12 hours ago | Economy

Three arrested over killing of 2 auto-rickshaw drivers in Gendaria
Three arrested over killing of 2 auto-rickshaw drivers in Gendaria

13 hours ago | City

Govt decides to repeal Cyber Security Act
Govt decides to repeal Cyber Security Act

13 hours ago | National

Mumbai police summon Raipur man after Shah Rukh Khan receives death threat over phone
Mumbai police summon Raipur man after Shah Rukh Khan receives death threat over phone

13 hours ago | Showbiz

PSG's heartbreaking defeat sealed by last-minute goal
PSG's heartbreaking defeat sealed by last-minute goal

14 hours ago | Sports

Indonesia's Mount Lewotobi Laki Laki erupts for the second time in a week
Indonesia's Mount Lewotobi Laki Laki erupts for the second time in a week

14 hours ago | International

Allotment of land to Bannya’s music school Shurer Dhara cancelled
Allotment of land to Bannya’s music school Shurer Dhara cancelled

14 hours ago | Showbiz

Foreign Adviser welcomes new CIRDAP DG
Foreign Adviser welcomes new CIRDAP DG

14 hours ago | National

Economic census 2024 to begin on 10 Dec
Economic census 2024 to begin on 10 Dec

14 hours ago | Economy

BNP activists gather at Ziaur Rahman's grave to pay tribute
BNP activists gather at Ziaur Rahman's grave to pay tribute

14 hours ago | National

Australia to ban social media for children under 16
Australia to ban social media for children under 16

14 hours ago | Lifestyle

Israel buys 25 US-made F-15 aircraft for $5.2bn
Israel buys 25 US-made F-15 aircraft for $5.2bn

14 hours ago | International

Fire erupts in Badda residential building
Fire erupts in Badda residential building

14 hours ago | City

Most Read
Netherlands, CGS launch project to empower women and youth in Bangladesh politics
Netherlands, CGS launch project to empower women and youth in Bangladesh politics

15 hours ago | National

China’s PLA launches latest J-35A stealth fighter jet
China’s PLA launches latest J-35A stealth fighter jet

21 hours ago | Tech

Give election immediately for full reform of country: Golam Parwar
Give election immediately for full reform of country: Golam Parwar

18 hours ago | National

Bangladesh must be developed in such a way that the world is drawn closer to it: CA
Bangladesh must be developed in such a way that the world is drawn closer to it: CA

16 hours ago | National

Massive victory of four Bangladeshis
Massive victory of four Bangladeshis

19 hours ago | National

Kamal's old house in Bagbari, the birthplace of Ziaur Rahman
Kamal's old house in Bagbari, the birthplace of Ziaur Rahman

18 hours ago | Special

8,000 crore in the syndicate's pocket
8,000 crore in the syndicate's pocket

19 hours ago | Special

Israel buys 25 US-made F-15 aircraft for $5.2bn
Israel buys 25 US-made F-15 aircraft for $5.2bn

14 hours ago | International

Govt decides to repeal Cyber Security Act
Govt decides to repeal Cyber Security Act

13 hours ago | National

Trump and allies prepare for power shift following landslide victory over Harris
Trump and allies prepare for power shift following landslide victory over Harris

18 hours ago | International

Mushfiqur Rahim uncertain in remaining ODIs
Mushfiqur Rahim uncertain in remaining ODIs

17 hours ago | Sports

World leaders praise Trump
World leaders praise Trump

20 hours ago | International

Global icons express their disappointment over Trump's victory
Global icons express their disappointment over Trump's victory

15 hours ago | Showbiz

Which direction will Trump choose on Ukraine, the Middle East, and China?
Which direction will Trump choose on Ukraine, the Middle East, and China?

14 hours ago | International

Former IGP Mamun testifies in tribunal case
Former IGP Mamun testifies in tribunal case

15 hours ago | National

Bangladesh suffer 92-run defeat in first ODI against Afghans
Bangladesh suffer 92-run defeat in first ODI against Afghans

22 hours ago | Sports

Ponting foresees India's "Collapse" in Australia
Ponting foresees India's "Collapse" in Australia

17 hours ago | Sports

Trump’s victory unlikely to alter US Fed rate cut plans
Trump’s victory unlikely to alter US Fed rate cut plans

19 hours ago | International

China's consistent US policy as Asian nations react to Trump’s win
China's consistent US policy as Asian nations react to Trump’s win

21 hours ago | International

Dhaka’s air quality remains the same ‘unhealthy’
Dhaka’s air quality remains the same ‘unhealthy’

20 hours ago | City

All set to take Khaleda Zia abroad for treatment
All set to take Khaleda Zia abroad for treatment

20 hours ago | National

CID investigating Anisul’s ‘girlfriend’ Tawfiqa
CID investigating Anisul’s ‘girlfriend’ Tawfiqa

22 hours ago | National

WhatsApp launches new feature
WhatsApp launches new feature

19 hours ago | Tech

Why did Vidya consider herself ‘Unlucky’?
Why did Vidya consider herself ‘Unlucky’?

16 hours ago | Showbiz

PSG's heartbreaking defeat sealed by last-minute goal
PSG's heartbreaking defeat sealed by last-minute goal

13 hours ago | Sports

King, Carty centuries seal West Indies series win
King, Carty centuries seal West Indies series win

18 hours ago | Sports

BNP proposes 5 names for new EC
BNP proposes 5 names for new EC

20 hours ago | National

Biden to address nation after Trump's mighty comeback
Biden to address nation after Trump's mighty comeback

15 hours ago | International

Local, foreign investors urged to invest in Bangladesh's marine, offshore industry
Local, foreign investors urged to invest in Bangladesh's marine, offshore industry

10 hours ago | City

Blocked accounts on X can now see your public posts
Blocked accounts on X can now see your public posts

19 hours ago | Tech