Markets React to Tight U.S. Presidential Race

Global investors price in a potential Donald Trump victory in the U.S. presidential elections, affecting stock futures, the dollar, and treasuries. Analysts note Harris lagging in key states, influencing markets. Republicans gain Senate control, bolstering Trump's potential policies impacting taxes, trade, and regulations.

Global investors are increasingly factoring in the likelihood of a win for Republican Donald Trump in the U.S. presidential elections, with Trump taking a lead late on Tuesday as results from key battleground states remain pending. This shift has caused U.S. stock futures and the dollar to rise, alongside climbing Treasury yields and a surge in Bitcoin, all regarded by analysts as market trends favoring a Trump victory over Democrat Kamala Harris.

Jens Nordvig, CEO at Exante, noted that their analysis shows Harris lagging behind her 2020 performance, prompting markets to adjust to a potential Trump win as reflected in bonds and dollar strength. This election is regarded as one of the tightest in modern U.S. history, with significant implications for tax, trade policy, and U.S. institutions.

By 11 pm ET, Trump had secured 211 Electoral College votes against Harris's 145. The Republicans' win in the U.S. Senate ensures they will control at least one chamber of Congress next year. The ensuing confidence has resulted in asset trades aligning with Trump's policy promises and various investors, like Nick Ferres from Vantage Point Asset Management, are capitalizing on higher yield expectations by investing in bank shares.

(With inputs from agencies.)