Arguably one of the most important weeks of the year featuring the US presidential election along with other significant events. The “Trump Trade” included a rollercoaster week for yields, crypto surging and the Dow having one of its best ever days. Tesla soared & Nvidia regained the title as the world’s most valuable company. The FED also cut benchmark rates by 25bps as widely expected, with markets now looking for clues amidst Chair Powell’s rhetoric for indications of what’s on the table for December. Read more in this week's key stories below:
Trump wins
Donald Trump’s US election victory saw US equity markets reach record highs with the S&P 500 up 2.5%, the Nasdaq gaining 2.7%, and the Dow Jones rising 3.6%. The Russell 2000 small cap index soared 5.8% on hopes that Trump will onshore, deregulate and pass new corporate tax cuts. US yields eased back lower as the result provides a dominant win for Donald Trump and the Republican party.
Trump won: What now?
Cryptocurrencies surge
Bitcoin surged to a record high + $76,000, from a crypto-market view Trump has been seen as the more favorable candidate due to his stance on a more crypto-friendly Securities & Exchange Commission. Several “memecoins” including Dogecoin (+15%) & Shiba Inu (6%) also surged, and the broader bitcoin-related market also reacted in line with Robinhood +15%, Coinbase +22%, MARA Holdings +14%. In Saxo we saw a 7% increase in number of client positions, with a clear overweight of long exposure albeit added slightly more short positions this week.
Crypto and Blockchain
Tesla seen as a big winner
Tesla gapped 15% higher post-election results as Musk was seen as key architect behind Trumps victory, despite Trump not being an Electric Vehicle fan and has promised to eliminate tax credits on EV vehicles purchases. Markets are betting that Musk has hedged Tesla fortunes which could help Musk realise Tesla’s ambitions on robotaxi, which would require more regulatory leniency if Tesla is to continue using its current LIDAR (Light Detection and Ranging) technology. At Saxo we saw in this week a continuation of clients overall long exposure with a week on week increase of ratio of long to short positions of 2.5%.
Trump 2.0 Playbook
Palantir goes on and on
Palantir Technologies saw its stock price surge to a record high of $57 this week after reporting strong quarterly revenue and raising its forecast for operating income. Third-quarter sales increased by 30% to $725.5 million. CEO Alex Karp highlighted strong demand for Palantir's AI software from US government and commercial customers. The company raised its 2024 revenue guidance also. Palantir's share price has soared nearly 200% this year, driven by demand for its AI tools and its inclusion in the S&P 500. The company's US government business saw its highest quarterly growth in nearly four years, boosted by defense spending and large government contracts.
Will the US election result spark a gold correction?
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Head of Fixed Income Strategy
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Chief Investment Strategist
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Chief Investment Strategist
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Head of Commodity Strategy
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Chief Investment Strategist
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Chief Investment Strategist
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Chief Investment Strategist
Quarterly Outlook
Head of Fixed Income Strategy
Quarterly Outlook
Head of Commodity Strategy
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