Global stocks rallied, the U.S. dollar surged and commodities pushed lower on “Trump trades” as markets took in the results of the U.S. election.
Equities
World markets climbed as former president Donald Trump won the race for the White House.
S&P 500 and Dow futures touched record highs in sharp and broad-based Wall Street rally. Dow futures were up 2.86 per cent, S&P 500 futures gained 2.28 per cent and Nasdaq futures rose 1.77 per cent.
TSX futures followed sentiment higher.
In Canada, investors are getting results from Brookfield Infrastructure Partners LP, Manulife Financial Corp., Great-West Lifeco Inc., Choice Properties REIT, Nutrien Ltd., Franco-Nevada Corp. and GFL Environmental Inc.
“Markets absolutely crave certainty,” said David Allen, portfolio manager, Plato Global Alpha Fund, adding that a Trump victory was likely “priced in at the margins.”
Overseas, the pan-European STOXX 600 was up 1.21 per cent in morning trading. Britain’s FTSE 100 rose 1.21 per cent, Germany’s DAX gained 0.78 per cent and France’s CAC 40 advanced 1.28 per cent.
In Asia, Japan’s Nikkei closed 2.61 per cent higher, while Hong Kong’s Hang Seng slid 2.2 per cent.
Commodities
Oil prices were under pressure along with other commodities with the U.S. dollar holding strong as “Trump trades” soared.
West Texas Intermediate (WTI) crude futures dropped 1.35 per cent to US$71.03 a barrel, while Brent crude futures fell 1.4 per cent to US$74.47.
Gold prices hit a near three-week low, while investors also kept a close tab on the upcoming Federal Reserve policy meeting.
Spot gold slipped 0.8 per cent to US$2,721.21 an ounce, while U.S. gold futures lost 0.7% to $2,730.20.
Currencies and bonds
The Canadian dollar weakened against its U.S. counterpart.
The day range on the loonie was 71.73 US cents to 72.35 US cents in the early premarket period. The Canadian dollar was down about 1.35 per cent against the greenback over the past month.
The U.S. dollar index, which weighs the greenback against a group of currencies, surged 1.53 per cent to 105.07.
The euro sank 1.8 per cent to US$1.0732. The British pound dropped 1.19 per cent to US$1.2887.
In bonds, the yield on the U.S. 10-year note was last up at 4.458 per cent ahead of the North American opening bell.
Economic news
China trade surplus
Japan and Euro zone services and composite PMI
Germany factory orders
(10 a.m. ET) Canada’s Ivey PMI for October
(10 a.m. ET) U.S. Global Supply Chain Pressure Index for October
(12:25 p.m. ET) Bank of Canada senior deputy governor Carolyn Rogers speaks to the Economic Club of Canada in Toronto.
Also: U.S. Fed meeting begins.
With Reuters and The Canadian Press