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Stocks Surge With Metals as Focus Turns to Trump’s Policies 

November 10, 2016

James Regan & Alan Soughley, Bloomberg

Donald Trump’s unlikely rise to power is providing a shot in the arm for global financial markets, with stocks and commodities rallying on optimism that his fiscal-stimulus plans will boost the global economy.

European equities joined a global rally as they headed for their biggest four-day jump since July. Banks surged on prospects of lighter regulation for their U.S. operations and higher lending rates, and miners jumped on increased metals prices. Copper rose the most in more than three years on expectations Trump will increase infrastructure spending. Currencies of most commodity-producing nations advanced, while Bloomberg’s dollar index reversed losses. Government bonds in Europe and Asia slid as the inflation outlook lifted, while corporate-bond sales resumed in Europe as markets stabilized.

There’s been a U-turn in global markets since the shock win for Trump triggered a knee-jerk selloff in equities and rush into haven assets. European shares Wednesday staged their biggest turnaround since March as investors took comfort in his acceptance speech. They are starting to look beyond Trump’s campaign rhetoric, focusing instead on his promises to cut taxes and at least double Hilary Clinton’s estimated $275 billion, five-year plan for roads, airports and bridges. Read more

 
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