Markets React to Trump Election Prospects

European and global markets experienced volatility as early election results indicated a potential victory for Donald Trump. Markets responded with surges in the dollar and Wall Street futures. Trump's proposed economic policies could affect inflation, interest rates, and trade, resulting in significant market implications.

European and global markets braced for upheaval as U.S. election results suggested a potential win for Republican candidate Donald Trump. Wall Street futures surged, and the dollar saw notable gains amid expectations of Trump's economic agenda.

Analysts predict Trump's policies on immigration, tax cuts, and tariffs could elevate inflation and bond yields, potentially reversing some of the Federal Reserve's anticipated interest rate cuts. As a result, future rate prospects soured, with December futures dropping 8 ticks.

Alongside this, 10-year Treasury yields jumped to their highest since April, while currencies like the euro and yen fell against the dollar. Stock markets remained cautious, especially Europe, amid fears of global trade tensions and EU-Mediterranean geopolitical instability.

(With inputs from agencies.)