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Stock markets and metal prices rally as Trump bounce continues – live updates Stock markets and metal prices rally as Trump bounce continues – live updates
(35 minutes later)
12.53pm GMT
12:53
Summers: Trump needs concrete plans and experienced people
Larry Summers, the former US Treasury secretary, is cautiously hopeful that the infrastructure plan proposed by Donald Trump could help the US economy.
He just told Bloomberg TV that he “welcomes and applauds” Trump’s pledge to renew America’s highways, bridges, airports schools and hospitals.
It could boost job creation in the short tun, and expand the US economy’s capacity for growth in the medium term, believes Summers - who has often called for more fiscal spending to fight ‘secular stagnation’.
But Summers also sounds deeply concerned, saying Trump needs to propose “serious and concrete plans” to address America’s economic concerns, and surround himself with responsible people with “considerable experience”.
He says calling China a “currency manipulator” is unwise, while repealing the NAFTA trade deal would do enormous economic damage.
And Summers, who served under Bill Clinton, suggets Trump cannot be as divisive in government as he was in the campaign.
Unless there is a clear sense that all Americans are welcomed and part of his vision of a prosperous America, and all nations are part of his vision o f a prosperous world, I don’t think he’ll be successful in creating the world we all want to see, Summers concludes.
12.22pm GMT12.22pm GMT
12:2212:22
Demand for gold hit a record high yesterday, which tells you a couple of things.Demand for gold hit a record high yesterday, which tells you a couple of things.
1) There was a massive flight to safe-haven assets as the shock election result rocked Asian and European markets.1) There was a massive flight to safe-haven assets as the shock election result rocked Asian and European markets.
2) People are buying gold as a hedge against inflation (the price has risen by 0.3% today).2) People are buying gold as a hedge against inflation (the price has risen by 0.3% today).
Somehow, it seems that yesterday was a busy day for #gold: COMEX aggregate gold trading volume hit a record high (h/t @EdVanDerWalt) #Trump pic.twitter.com/TC03csJ6MwSomehow, it seems that yesterday was a busy day for #gold: COMEX aggregate gold trading volume hit a record high (h/t @EdVanDerWalt) #Trump pic.twitter.com/TC03csJ6Mw
12.15pm GMT12.15pm GMT
12:1512:15
Over in America, Donald Trump is preparing to visit the White House to meet president Obama, following a night of protests against his election victory.Over in America, Donald Trump is preparing to visit the White House to meet president Obama, following a night of protests against his election victory.
Our main liveblog is covering all the details:Our main liveblog is covering all the details:
12.11pm GMT12.11pm GMT
12:1112:11
OECD: Trump must spell out his plansOECD: Trump must spell out his plans
Catherine Mann, the chief economist at the Organisation for Economic Co-operation and Development, says Donald Trump needs to flesh out his economics plans, fast.Catherine Mann, the chief economist at the Organisation for Economic Co-operation and Development, says Donald Trump needs to flesh out his economics plans, fast.
Speaking on Bloomberg TV, Mann says Trump needs to set out policies to identify sources of growth in the US economy, and make sure the benefits are shared fairly between the American people.Speaking on Bloomberg TV, Mann says Trump needs to set out policies to identify sources of growth in the US economy, and make sure the benefits are shared fairly between the American people.
That’s what got him to the White House , the fact that the gains aren’t widely shared.That’s what got him to the White House , the fact that the gains aren’t widely shared.
11.46am GMT11.46am GMT
11:4611:46
The deputy leader of Germany’s governing CDU party, Michael Fuchs, hopes that president Trump will be more responsible than nominee Trump:The deputy leader of Germany’s governing CDU party, Michael Fuchs, hopes that president Trump will be more responsible than nominee Trump:
just wait and see #trump- he already made a change of behavior now that the elections are over @flacqua @BloombergTV @bsurveillance pic.twitter.com/jeaTG1jbgEjust wait and see #trump- he already made a change of behavior now that the elections are over @flacqua @BloombergTV @bsurveillance pic.twitter.com/jeaTG1jbgE
free trade is crucial for Germany and the world - I think #Trump will be pragmatic @flacqua @BloombergTV @bsurveillancefree trade is crucial for Germany and the world - I think #Trump will be pragmatic @flacqua @BloombergTV @bsurveillance
11.21am GMT11.21am GMT
11:2111:21
Copper surgesCopper surges
The copper prices has hit its highest level since July 2015, up 5% today, thanks to Trump’s promise to rebuild America’s infrastructure.The copper prices has hit its highest level since July 2015, up 5% today, thanks to Trump’s promise to rebuild America’s infrastructure.
And shares in two mining companies, Antofagasta and Vedanta, have both soared by 14% as investors anticipate a new fiscal boost next year.And shares in two mining companies, Antofagasta and Vedanta, have both soared by 14% as investors anticipate a new fiscal boost next year.
Ole Hansen, head of commodity strategy at Saxo Bank, says copper is the ‘big winner’ from Trump’s victory (which won’t be much comfort to those on the losing side).Ole Hansen, head of commodity strategy at Saxo Bank, says copper is the ‘big winner’ from Trump’s victory (which won’t be much comfort to those on the losing side).
He adds:He adds:
President elect Donald Trump’s pledge to spend more than $500 billion on rebuilding America’sroads, bridges and airports helped send construction and steel stocks sharply higher following his surprise election win.President elect Donald Trump’s pledge to spend more than $500 billion on rebuilding America’sroads, bridges and airports helped send construction and steel stocks sharply higher following his surprise election win.
Tom Albanese, chief executive officer of Vedanta Resources, also anticipates a boost.Tom Albanese, chief executive officer of Vedanta Resources, also anticipates a boost.
He says (via Blooomberg):He says (via Blooomberg):
All that we see for President-elect Trump is that he will focus on building, he will focus on the infrastructure.All that we see for President-elect Trump is that he will focus on building, he will focus on the infrastructure.
“That is what the market is reacting to.”“That is what the market is reacting to.”
Whopping gains for the copper miners today https://t.co/0ZBDERxcTG pic.twitter.com/SipIO5PAFqWhopping gains for the copper miners today https://t.co/0ZBDERxcTG pic.twitter.com/SipIO5PAFq
UpdatedUpdated
at 11.31am GMTat 11.31am GMT
10.45am GMT10.45am GMT
10:4510:45
Trump’s victory is also driving up the shares of military and defence companies.Trump’s victory is also driving up the shares of military and defence companies.
BAE Systems have jumped by 6% this morning, adding to yesterday’s spike following the election result.BAE Systems have jumped by 6% this morning, adding to yesterday’s spike following the election result.
It’s a sign that the City expect Trump to deliver on his promise to boost spending on the US military (which he claimed had become depleted on president Obama’s watch). BAE is one of the biggest suppliers to the US department of defence, and makes armoured vehicles, ships, fighter jets and missiles.It’s a sign that the City expect Trump to deliver on his promise to boost spending on the US military (which he claimed had become depleted on president Obama’s watch). BAE is one of the biggest suppliers to the US department of defence, and makes armoured vehicles, ships, fighter jets and missiles.
And if Trump weakens the ties between Nato members, then European countries may feel compelled to boost their own armies.And if Trump weakens the ties between Nato members, then European countries may feel compelled to boost their own armies.
10.26am GMT10.26am GMT
10:2610:26
Here’s confirmation that inflation expectations are rising, via analyst Arne Petimezas of AFS Group:Here’s confirmation that inflation expectations are rising, via analyst Arne Petimezas of AFS Group:
Reflation trade is on pic.twitter.com/gmbUfq65VIReflation trade is on pic.twitter.com/gmbUfq65VI
10.17am GMT10.17am GMT
10:1710:17
Higher inflation expectations drive UK borrowing costs to post-Brexit highHigher inflation expectations drive UK borrowing costs to post-Brexit high
Predictions that Donald Trump’s policies will drive US inflation higher are causing some dramatic moves in the financial markets today.Predictions that Donald Trump’s policies will drive US inflation higher are causing some dramatic moves in the financial markets today.
The interest rate, or yield, on Britain’s 10-year government bonds just jumped over 1.31%, up from 1.23% on Wednesday night. That’s the highest level since 24th June, the aftermath of the Brexit referendum.The interest rate, or yield, on Britain’s 10-year government bonds just jumped over 1.31%, up from 1.23% on Wednesday night. That’s the highest level since 24th June, the aftermath of the Brexit referendum.
Other European government bond yields are also rising.Other European government bond yields are also rising.
Investors are betting that Trump’s tax cuts and debt-fuelled spending plans, if enacted, would be inflationary. So they’re seeking a higher rate of return for holding government debt.Investors are betting that Trump’s tax cuts and debt-fuelled spending plans, if enacted, would be inflationary. So they’re seeking a higher rate of return for holding government debt.
https://t.co/WdZyqK7uMX pic.twitter.com/OVoZm0X9Eahttps://t.co/WdZyqK7uMX pic.twitter.com/OVoZm0X9Ea
UpdatedUpdated
at 10.20am GMTat 10.20am GMT
9.38am GMT9.38am GMT
09:3809:38
The news overnight that Donald Trump doesn’t want to force Federal Reserve chair Janet Yellen to resign has also cheered the markets.The news overnight that Donald Trump doesn’t want to force Federal Reserve chair Janet Yellen to resign has also cheered the markets.
Yellen’s first term expires in 2018, but there has been speculation that she might feel pressure to step down, given the attacks from Trump during the campaign.Yellen’s first term expires in 2018, but there has been speculation that she might feel pressure to step down, given the attacks from Trump during the campaign.
Jim McCaughan, boss of Principal Global Investors, has told Bloomberg TV that market confidence will improve if Yellen stays, adding:Jim McCaughan, boss of Principal Global Investors, has told Bloomberg TV that market confidence will improve if Yellen stays, adding:
If she goes, who knows, because that depends on who comes in next.If she goes, who knows, because that depends on who comes in next.
9.22am GMT9.22am GMT
09:2209:22
China: We hope to maintain economic co-operation with the USChina: We hope to maintain economic co-operation with the US
Tom PhillipsTom Phillips
China’s foreign ministry spokesperson has been giving some more reaction to Trump’s victory at a press conference in Beijing. Asked about Trump’s vows to introduce a 45% tariff on Chinese imports, spokesperson Lu Kang noted that economic ties were blossoming with trade increasing from $2.5bn in 1970 to $560bn last year.“Economic cooperation between China and the US is what has made our bilateral relations stable and has propelled our bilateral relation forward,” Lu said.China’s foreign ministry spokesperson has been giving some more reaction to Trump’s victory at a press conference in Beijing. Asked about Trump’s vows to introduce a 45% tariff on Chinese imports, spokesperson Lu Kang noted that economic ties were blossoming with trade increasing from $2.5bn in 1970 to $560bn last year.“Economic cooperation between China and the US is what has made our bilateral relations stable and has propelled our bilateral relation forward,” Lu said.
“I hope US is able to view our economic trade relationship in an objective and unbiased manner and work with us so that we can move forward. I believe that if the US keeps the country’s interest and its people’s interests in mind, they will make the right decision”.“I hope US is able to view our economic trade relationship in an objective and unbiased manner and work with us so that we can move forward. I believe that if the US keeps the country’s interest and its people’s interests in mind, they will make the right decision”.
Asked whether such protectionist measures would harm the US-China relationship the spokesperson said:Asked whether such protectionist measures would harm the US-China relationship the spokesperson said:
“I will not comment on speculation. As I said I believe that the US’s leaders will make their decision based on the fundamental interests of their people.“I will not comment on speculation. As I said I believe that the US’s leaders will make their decision based on the fundamental interests of their people.
9.17am GMT9.17am GMT
09:1709:17
The Dow Jones industrial average is on track to hit a new record high, when the US stock market opens in five hours.The Dow Jones industrial average is on track to hit a new record high, when the US stock market opens in five hours.
Last night, the Dow closed near to its highest levels, and the future market is predicting a fresh spike today.Last night, the Dow closed near to its highest levels, and the future market is predicting a fresh spike today.
The Trump honeymoon continues for U.S. stocks today. Dow futures are rallying 130 points, S&P futures are up 0.7% and Nasdaq is rallying 15 pic.twitter.com/V03ybEac6jThe Trump honeymoon continues for U.S. stocks today. Dow futures are rallying 130 points, S&P futures are up 0.7% and Nasdaq is rallying 15 pic.twitter.com/V03ybEac6j
Major moves in the out of hours index market: Dow currently 160 points higher than last night's close, trading at 18,750, an all-time high.Major moves in the out of hours index market: Dow currently 160 points higher than last night's close, trading at 18,750, an all-time high.
UpdatedUpdated
at 9.39am GMTat 9.39am GMT
9.09am GMT9.09am GMT
09:0909:09
The prospect of tax reforms and a government spending boost are pushing shares up, says Jeremy Cook of currency trading firm World First.The prospect of tax reforms and a government spending boost are pushing shares up, says Jeremy Cook of currency trading firm World First.
He says the intial Trump slump has swiftly transformed into the Trump jump:He says the intial Trump slump has swiftly transformed into the Trump jump:
The shortening of the timeframe between decline and rebound could be down to many things but issues around full Republican control of the Presidency and the possibility that changes in tax reform, investment and regulation will come through quicker may help.The shortening of the timeframe between decline and rebound could be down to many things but issues around full Republican control of the Presidency and the possibility that changes in tax reform, investment and regulation will come through quicker may help.
Trump has also been called ‘an inflation time-bomb’ given his pledges to increase spending so we must now look at Fed policy through a new lens. Similarly, although he was elected yesterday he does not take the reins until January 20th.Trump has also been called ‘an inflation time-bomb’ given his pledges to increase spending so we must now look at Fed policy through a new lens. Similarly, although he was elected yesterday he does not take the reins until January 20th.
World First Morning Update November 10th - Trump slump turns into Trump jump - https://t.co/iYXztyUTXqWorld First Morning Update November 10th - Trump slump turns into Trump jump - https://t.co/iYXztyUTXq
9.06am GMT9.06am GMT
09:0609:06
Well quite:Well quite:
If the market's going to rally every time Trump rows back on some ludicrous campaigning point, there's no limit to where we could end up.If the market's going to rally every time Trump rows back on some ludicrous campaigning point, there's no limit to where we could end up.
8.50am GMT8.50am GMT
08:5008:50
Investors are hoping that taking on the presidency might provoke a change in Donald Trump.Investors are hoping that taking on the presidency might provoke a change in Donald Trump.
Mike van Dulken of Accendo Markets says the market rally is based on:Mike van Dulken of Accendo Markets says the market rally is based on:
...an reassessment of views about Trump and belief that a more Presidential individual is already replacing the highly divisive candidate character he merely portrayed in order to appeal to American frustration and win the populist vote....an reassessment of views about Trump and belief that a more Presidential individual is already replacing the highly divisive candidate character he merely portrayed in order to appeal to American frustration and win the populist vote.
Markets are demonstrating an impressive ability to digest significant political change and move on, even quicker than we saw in the immediate aftermath of the UK’s Brexit vote.Markets are demonstrating an impressive ability to digest significant political change and move on, even quicker than we saw in the immediate aftermath of the UK’s Brexit vote.
Markets are looking to jump on any positives rather than negativesMarkets are looking to jump on any positives rather than negatives
Given some of Trump’s conduct during the election campaign (divisive comments about Muslims, Mexicans, those awful tape-recordings about women...), a transformation by Inauguration Day would be welcome. But is it realistic?Given some of Trump’s conduct during the election campaign (divisive comments about Muslims, Mexicans, those awful tape-recordings about women...), a transformation by Inauguration Day would be welcome. But is it realistic?
8.33am GMT8.33am GMT
08:3308:33
Anyone who bought European shares during Donald Trump’s victory speech yesterday morning has made a decent profit.Anyone who bought European shares during Donald Trump’s victory speech yesterday morning has made a decent profit.
The markets have now gained 4.6% since Wednesday’s opening tumble:The markets have now gained 4.6% since Wednesday’s opening tumble:
Stoxx Europe 600 up about 4.6% from its post-election low right now. pic.twitter.com/flLRQRxBrEStoxx Europe 600 up about 4.6% from its post-election low right now. pic.twitter.com/flLRQRxBrE
UpdatedUpdated
at 8.39am GMTat 8.39am GMT
8.27am GMT8.27am GMT
08:2708:27
European banks are also rallying, on speculation that the next president might unravel some of the regulations brought in since the 2008 crisis.European banks are also rallying, on speculation that the next president might unravel some of the regulations brought in since the 2008 crisis.
During the campaign, Donald Trump promised to tear up Dodd-Frank -- the legislation brought in to protect consumers and prevent banks becoming too big to fail.During the campaign, Donald Trump promised to tear up Dodd-Frank -- the legislation brought in to protect consumers and prevent banks becoming too big to fail.
Trump believes it is holding back the economy, and once told Fox News that:Trump believes it is holding back the economy, and once told Fox News that:
“We have to get rid of Dodd-Frank. The banks aren’t loaning to people that need it. The regulators are running the banks.”“We have to get rid of Dodd-Frank. The banks aren’t loaning to people that need it. The regulators are running the banks.”
But it’s not clear what Trump would replace Dodd-Frank with; simply ditching the law could create the conditions that caused the credit crisis in the first place.But it’s not clear what Trump would replace Dodd-Frank with; simply ditching the law could create the conditions that caused the credit crisis in the first place.
EVERY European banks in the green today...hopes of higher rates & lower regulation post Trump pic.twitter.com/h2PFZ52MxVEVERY European banks in the green today...hopes of higher rates & lower regulation post Trump pic.twitter.com/h2PFZ52MxV
8.16am GMT8.16am GMT
08:1608:16
Coper-producer Antofagasta is the top riser in London, with fellow miners Glencore and Anglo American close behind.Coper-producer Antofagasta is the top riser in London, with fellow miners Glencore and Anglo American close behind.
Traders are betting that Trump’s programme of cutting taxes, a new debt-funded infrastructure programme, would push up inflation and raise demand for commodities.Traders are betting that Trump’s programme of cutting taxes, a new debt-funded infrastructure programme, would push up inflation and raise demand for commodities.