Donald Trump’s unlikely rise to power is providing a shot in the arm for global financial markets, with stocks and metals rallying on optimism that his fiscal-stimulus plans will boost the economy. Bonds tumbled.
The MSCI All Country World Index erased its monthly decline and the Dow Jones Industrial Average climbed to a record high. Copper posted its biggest back-to-back surge in three years, gaining alongside lead, zinc, tin and aluminum. The dollar rose against most major peers, while government bonds extended their selloff as Trump’s win bolstered bets on faster inflation. Latin American equities, debt and currencies plunged on speculation that higher U.S. interest rates would damp the appeal of riskier emerging-market securities.
MSCI’s global gauge rose 0.2 percent at 4 p.m. in New York. The S&P 500 Index added 0.2 percent to 2,167.48, and the Dow Average jumped 218.19 points. Some of the biggest technology companies from Apple Inc. to Microsoft Corp. sent the Nasdaq Composite Index down. Meanwhile, the small-cap Russell 2000 Index extended a five-day rally to 8.2 percent.
The Stoxx Europe 600 Index erased gains as a slide in utility and real-estate shares outweighed a rally in banks. The MSCI Emerging Markets Index dropped to the lowest since August, with benchmarks in Argentina, Mexico and Brazil slumping more than 3.2 percent. Russian shares rallied on bets Trump will mend ties with Moscow.
Asian shares dipped while the dollar strengthened broadly on Friday as U.S. bond yields soared on expectations U.S. President-elect Donald Trump's policies would stoke inflation.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.2 percent, with Korean shares .KS11 off 0.5 percent. Australian shares eked out small gains of 0.1 percent.
Reference: Reuters, Bloomberg
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