US stocks and Bitcoin hit record highs and the dollar soared following Trump’s victory.

US stocks hit record highs on Wall Street and the dollar posted its biggest gain in eight years as Donald Trump was re-elected to the White House in a historic victory.

Bitcoin also hit record highs following Trump’s election pledge to make the United States the “Bitcoin and cryptocurrency capital of the world.”

But investors expect Trump’s plans to cut taxes and increase tariffs will spur inflation and slow the pace of interest rate cuts.

Over the long term, higher interest rates mean investors can get better returns on their savings and dollar investments.

Markets and currencies around the world have changed dramatically following the news of the US election.

• The dollar rose about 1.75% against a range of currencies including the pound, euro and Japanese yen.
• Major U.S. stock indices surged as trading began, with banks performing particularly well.
• The pound fell 1.41% against the US dollar, falling to its lowest level since August.
• The FTSE 100 index of UK-listed companies rose 0.1% on Wednesday afternoon.
• The euro fell 2.24% against the US dollar, hitting its lowest level since June.
• In Japan, the benchmark Nikkei 225 share index closed 2.6% higher, while Australia’s ASX 200 index closed 0.8% higher.
• Mainland China’s Shanghai Composite Index closed down 0.1%, and Hong Kong’s Hang Seng Index fell about 2.23%.

The value of Bitcoin rose by $6,000 (£4,645) to a record high of $75,371.69.

Trump’s stance on cryptocurrency stands in stark contrast to that of the Biden administration, which has led a major crackdown on cryptocurrency companies.

President Trump suggested he could fire Securities and Exchange Commission (SEC) Chairman Gary Gensler after he took legal action against several cryptocurrency companies during his campaign.

President Trump also said he plans to task billionaire Elon Musk with auditing government waste.

Mr. Musk has long been a supporter of cryptocurrencies, and his company, Tesla, is well-known. $1.5 billion invested in Bitcoin in 2021Although the prices of digital currencies can be very volatile.

Tesla’s Frankfurt-listed shares rose more than 14% at the opening bell on Wednesday. Musk, Tesla’s largest shareholder, has supported Trump throughout the election campaign.

But experts predicted a turbulent day elsewhere in financial markets in response to global uncertainty and Trump’s economic plans.

U.S. bond yields – the returns the government promises to pay debt buyers – soared Wednesday.

The bond is Essentially an IOU They can be traded in financial markets, and governments often sell bonds when investors want to borrow money.

The move may suggest that investors believe borrowing will increase under the new government and are demanding higher returns for their money.

Some economists have warned that Trump’s proposals on trade will come as a ‘shock’ to countries around the world, including the eurozone and UK economies.

President Donald Trump has said that if he becomes the next US president, he will significantly increase trade tariffs, especially against China.

Ahmet Kaya, chief economist at the National Institute for Economic and Social Research (Niesr), also said the UK could be “one of the countries most affected” by such plans.

The UK’s economic growth rate is expected to slow from 1.2% to 0.4% in 2025.

“Trump’s global trade policies are causing particular anxiety in Asia given his strong protectionist platform that has promised more aggressive tariffs on imports into the United States,” said Katrina Ell, director of economic research at Moody’s Analytics. “He said.

President Trump’s more isolationist stance on foreign policy has also raised questions about his willingness to defend Taiwan from potential attacks from China.

The self-governing island is a major producer of computer chips essential to the technologies that drive the global economy.

Investors also have other key issues to focus on this week.

On Thursday, the US Federal Reserve is expected to announce its latest decision on interest rates.

Central Bank Governor Jerome Powell’s comments will be closely watched around the world.

North America correspondent Anthony Zurcher covers the White House race in the twice-weekly US Election Unspun newsletter. UK readers can: Sign up here. Also available outside the UK. Sign up here.