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U.S. election: Dollar, Bitcoin soar high as Trump wins
By Kayode Sanni-Arewa
The United States dollar has surged as Republican Donald Trump surged to win back the White House in the presidential race.
Bitcoin is also at a record high as traders bet on potential tax cuts, tariffs, and rising inflation under Trump.
The result of the election is expected to have a major impact on the global economy.
The Republican Party has also taken control of the Senate but there are still votes left to count.
The dollar has soared by around 1.5% against a host of different currencies, including the pound, euro and the Japanese yen.
Meanwhile, the value of Bitcoin jumped by $6,000 (£4,645) to a record high of $75,371.69, surpassing the previous high of $73,797.98 in March this year.
In Japan, the benchmark Nikkei 225 stock index ended the session up by 2.6%, while Australia’s ASX 200 closed 0.8% higher.
Experts are predicting a turbulent day for the financial markets as a response to global uncertainty and Trump’s potential plans for the economy.
“Many of his measures will be inflationary and likely to lead to a rise in bond yields, putting pressure on the Federal Reserve in its quest to bring interest rates down,” BBC quoted Lindsay James, investment strategist at Quilter Investors, as saying.
Trump has pledged to make the U.S. the “bitcoin and cryptocurrency capital of the world”.
He plans to put billionaire Elon Musk in charge of an audit of governmental waste.
The major U.S. stock indexes also look likely to open sharply higher. That came after the Dow Jones Industrial Average, S&P 500, and Nasdaq all closed more than 1% higher on Tuesday.
Tesla’s Frankfurt-listed shares rallied over 14% at the open on Wednesday. Elon Musk, Tesla’s top shareholder, has supported Trump throughout his electoral campaign.
Trump has said he would dramatically increase trade tariffs, especially on China, if he became the next U.S. president.
“Trump’s global trade policies are causing particular angst in Asia, given the strong protectionist platform on which more aggressive tariffs on imports into the US have been pledged,” said Katrina Ell, director of economic research at Moody’s Analytics.
The former president’s more isolationist stance on foreign policy has also raised questions about his willingness to defend Taiwan against potential aggression from China.
The self-ruling island is a major producer of computer chips, which are crucial to the technology that drives the global economy.
Meanwhile, Trump’s tax-cutting agenda has also been broadly welcomed by big American companies.
“If Trump gets elected, we should see pro-business policies and tax cuts, in turn possibly driving up inflation and less rate cuts,” said Jun Bei Liu, portfolio manager at Tribeca Investment Partners.
However, not all indexes have reacted positively to the potential of a Trump victory.
In mainland China, the Shanghai Composite Index ended the day down 0.1%, while Hong Kong’s Hang Seng was down by around 2.23%.
Investors also have other key issues to focus on this week.
On Thursday, the U.S. Federal Reserve is due to announce its latest decision on interest rates.
Comments from the head of the central bank, Jerome Powell, will be watched closely around the world.
On Friday, top Chinese officials are expected to unveil more details about Beijing’s plans to tackle the slowdown of the world’s second-largest economy
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#EndBadGovernance protests: Reps Minority Caucus demand punitive measures against perpetrators, hail Tinubu, AGF for releasing minors
Following the immediate release of about 76 young kids charged for terrorism, treason, and arson by the Nigerian Police Force for participating at the #EndBadGovernance protest, the Minority Caucus of the House of Representatives lauds President Bola Tinubu for being responsive to calls by Nigerians, and the international community.
In a statement jointly signed by all principal officers in the Caucus, Rep Kingsley Chinda, leader, Ali Isa J.C
(Minority Whip)
Hon. Aliyu Madaki
(Deputy Minority Leader) Rep George Ozodinobi
(Deputy Minority Whip) said:
“We commend President Tinubu for his prompt directive, coming few days after the arraignment of the children which led to the Attorney-General of the Federation seeking to assume control, and termination of the suit charge entirely.
“While we extol the President for the timely intervention, the Caucus strongly canvass for the possible investigation, prosecution, and discipline of individuals, and government agencies involved in the despicable, callous, and inhuman action that has led to national disgrace, and global condemnation.
” Anybody, and institution that played roles in the hounding of the children into cells for about 95 days when they should be at their respective schools, trades, and vocations must be brought to book for necessary public umbrage, and punitive measures discharged to serve as deterrent to others.
“Conscious of the psychological trauma, and health challenges the children may have experienced, we appeal that quality reformatory therapy sessions, and medical support be advanced to them as they unite with their respective families.
“Also, we call for immediate reparation packages to the victims and their families to ameliorate the untoward hardship, pain, and emotional torture suffered during the period of unlawful incarceration.
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