Most of the US election results are in and Donald Trump has won both the electoral vote and the popular vote. In addition, the Republicans have gained control of the Senate and are close to keeping control of the House, a clean sweep.
US index futures are soaring on the news suggesting that investors see this decisive decision as a positive for the US economy and corporate earnings and a reduction to political uncertainty. Dow Futures are up 3.1%, S&P Futures are up 2.3%, NASDAQ Futures are up 1.8%. Small Caps are doing particularly well as Russell 2000 futures are up 5.9%. In Europe today, the FTSE is up 0.8% and the Dax is up 0.4%.
US treasury yields are also up this morning on speculation the new government in the US could boost the economy but also possibly spark renewed inflation through tariffs with the 10-year approaching 4.45%. The overnight news has ignited a major rally in the US Dollar, which is up 2.2% against Gold, 3.9% against Silver, 2.0% against the Euro, 1.4% against the Pound, 1.7% against the Yen and 0.8% against the Canadian Dollar.
US Dollar denominated commodities are also under pressure today with Copper down 4.4% and US Crude Oil down 2.8%. On the other hand, with traders seeing Trump as friendlier to cryptocurrencies than Harris, Bitcoin is up 6.5% having reached $75,000 overnight and Ether is up 8.0%