Global markets have been predicted to return to normalcy in December after the Trump-fuelled rally in November. The global market experienced a market-wide boost after Donald Trump was confirmed as the victor in the United States presidential election. Aside from the Wall Street and the United States dollar, Bitcoin also showed out.
However, the surge didn’t reach other neighboring countries and their currencies, with the euro, peso, and other tariff-based industries bearing the brunt. Meanwhile, it has been a month since the Trump-fuelled surge, and things are expected to return to normal. Analysts have warned about an impending bond market drop in reaction to Trump’s fiscal policy, while inflation is knocking.
Dollar dominates as Bitcoin makes a run for the top
The dollar surged by 2% against other currencies in November, crushing markets that were not ready for Trump’s tariff threats. The euro was not spared, dropping around 3% to trade at $1.05, a level not seen since 2022. The currency’s drop was fuelled by Germany’s weak economy and France’s political turmoil, with people wondering what’s next for the currency.
The Mexican peso did not put up a fight, dropping 2% against the dollar, with the country’s economy reacting to Trump’s trade policy, a bigger question. Pounds dropped 1%, while Yuan dropped by 1.5%. The Korean won and the Canadian dollar also suffered from the bullish momentum of the dollar, dropping slightly in their ways.
However, Bitcoin was the star of the month in November, stealing the spotlight after Trump’s election victory. The last time Bitcoin saw a rally like that, the general market was in unison about wanting a spot Bitcoin exchange-traded fund (ETF). Although analysts have predicted a positive outlook, there are fears about a likely correction. Should the market prepare to correct, investors might be caught in the storm.
Tech and bonds experience remarkable November
The tech market was not left out of the excitement, with the Nasdaq 100 posting figures it last saw in June. Tesla reacted to the victory, surging by 33%, while Nvidia registered considerable jumps after the increase in AI hype. However, there could be more gloom than boom in December for the tech market. With Trump predicted to initiate tariffs, tech giants could be caught in the crossfires.
While some investors are already pumping the brakes on AI, the ECB has also been warning investors of the benefits of caution towards the stocks. Although the stocks are so far into the sky, the market is skeptical about where it will land next month. Meanwhile, the bond market is far from its usual performance, with major regions showing different patterns.
The United States, for example, is expecting higher inflation and a larger deficit due to the current strong economic readings and Trump’s promises. Capital Economics puts Treasury yields at 4.5%, a slight jump from its present 4.24%. Germany, on the other hand, was not soared, losing 30 basis points in its 10-year yield to drop to 2.11%. Japan had a fruitful November, seeing a surge in its bond yields.
The post Global markets to undergo anticipated cool down after Trump-fuelled rally first appeared on Coinfea.
