Truth Social rocketed. Bitcoin soared in price. The dollar rose, and bond yields were up, while Chinese equities wobbled. Over the course of last night, as it became clear that Donald Trump had won the US presidential election, the markets responded to the news. The trouble is, no one really knows what Trump 2.0 means for the global economy.
Investors will have no idea until he forms an administration in January
The initial price moves were very obvious. With the backing of the main crypto tycoons, a Trump White House will be a lot friendlier to digital currencies, although even that had to be kept in perspective. A 7 per cent rise in Bitcoin is hardly a massive move for an asset that often moves by huge margins every day. The plan to impose massive tariffs strengthened the dollar, while Chinese companies may suffer from losing access to the American market.
And yet the market moves were surprisingly muted.
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