The "Trump Trade" Remains Strong as US Stocks Hit New Highs, Dollar and Bitcoin Rise

The "Trump Trade" Remains Strong as US Stocks Hit New Highs, Dollar and Bitcoin RiseOvernight, US equities hit new highs fueled by the "Trump Trade," with the dollar and Bitcoin also seeing gains. However, European and US stock futures have pulled back, and Asian markets opened lower, leading to a divergence in market sentiment

The "Trump Trade" Remains Strong as US Stocks Hit New Highs, Dollar and Bitcoin Rise

Overnight, US equities hit new highs fueled by the "Trump Trade," with the dollar and Bitcoin also seeing gains. However, European and US stock futures have pulled back, and Asian markets opened lower, leading to a divergence in market sentiment.

On Tuesday, November 12th, most Asian stock indexes closed lower. The Nikkei 225 index fell by more than 1% in the afternoon, the KOSPI dropped by roughly 1.8%, with SK Hynix falling almost 3%. India and Indonesia saw modest gains. US and European stock futures have also retreated, with the Euro Stoxx 50 futures down 0.8%.

The dollar continued its upward trend, while US treasuries declined. The Bloomberg Dollar Index rose for a fourth consecutive trading day, reaching a one-year high. Asian currencies weakened against the dollar, with the Thai baht and Indonesian rupiah leading the losses. The 10-year US Treasury yield rose 3 basis points to 4.34%.

The commodity market saw an overall decline. US crude oil, after falling over 3% yesterday, continued its descent, while gold retreated near the $2,600 level. Singapore iron ore futures fell below $100 per ton.

Bitcoin, however, maintained its strong momentum, breaching $89,000 to hit a new high before pulling back slightly, currently trading at $88,370.

Market analysts have pointed to the "Trump Trade" as the primary driver of recent US stock gains, with investors hopeful about a Republican victory in the midterm elections. Additionally, comments from Federal Reserve Chair Jerome Powell have injected confidence into the market, with expectations that the Fed will maintain accommodative monetary policy in the near term.

However, some investors remain concerned about the impact of Fed rate hikes and inflationary pressures on economic growth. The risk of a global economic slowdown remains as a concern for the market.

Moving forward, the market will closely watch the outcome of the midterm elections and the direction of the Fed's monetary policy. Investors should closely monitor relevant news and exercise caution when making investment decisions.