Investors on the German stock market reacted to Donald Trump’s clearly emerging victory in the US presidential election with purchases on Wednesday. The DAX recently rose significantly by 1.5 percent to 19,544 points. Before the trading session, the DAX had temporarily suffered losses. The MDax of medium-sized stock market stocks rose by 1.1 percent to 26,848 points on Wednesday morning. The EuroStoxx 50, the leading index for the euro zone, gained 1.5 percent.
According to forecasts from television stations, the Republican Trump secured the important swing state of Pennsylvania in the vote in the USA. Trump has already declared himself the winner of the election. He had previously won the swing states North Carolina and Georgia, giving himself a decisive lead over his opponent Kamala Harris.
“It was once again the economy that essentially decided the outcome of the US presidential election,” suspects Robert Greil, chief strategist at Merck Finck. Many Americans complained about the sharp rise in prices – even if the after-effects of the Covid pandemic were more to blame than the administration of President Joe Biden, who is still in office. However, this “obviously didn’t play a big role for many citizens at the ballot box,” said Greil.
Car values are collapsing
After the election, the automotive sector is the clear loser in German stock trading. Investors here fear punitive tariffs from the USA on German imports. The price losses range from 2.6 percent for Volkswagen to 5.3 percent for BMW. Things get more difficult at BMW a disappointing quarterly balance sheet for Munich.
The annual reports from Siemens Healthineers and Fresenius were much better received by investors. Siemens Healthineers shares clearly led the DAX with a gain of 8.6 percent. Fresenius prices increased by 5.3 percent.
In the second row of the MDax, the quarterly report of the software service provider Teamviewer was penalized. The shares fell by 9 percent. The prices of Evonik and Puma also came under pressure after the two companies’ quarterly reports.
In the third row in the SDax, Evotec shares fell by 12 percent after unexpectedly weak business figures. A record operating profit from the plant manufacturer Kontron caused the share price to rise by 8.4 percent.
Trump company and Tesla shares rally
In premarket US trading, shares of Trump Media & Technology Group shot up more than 40 percent. Donald Trump owns a majority stake in the parent company of the platform Truth Social. By the closing price the day before, the shares’ valuation had almost doubled since their debut in March.
The prospect of Donald Trump winning the US presidential election also caused Tesla shares listed in Frankfurt to rise by more than 14 percent in the premarket. Elon Musk, Tesla’s main shareholder, has supported Trump throughout his election campaign.
Bitcoin at record high
The Bitcoin reached a record high around the US election. At its peak, the cyber currency on the Bitstamp platform rose by more than 8 percent to $75,397, but recently the increase weakened again to $73,500. Traders speculated on an election victory for Trump, who is considered crypto-friendly. For its part, the digital currency industry had spent a lot of money promoting its causes during the election campaign.
Oil prices are falling
On the raw materials market, oil prices fell after rising the previous day due to an expected loss of production in the Gulf of Mexico due to a storm. The stronger dollar after the US presidential election is clearly causing problems for the price of oil and copper. North Sea oil Brent and US oil WTI each fell by up to 2.5 percent to $74.96 and $71.44 per barrel.
A stronger U.S. currency makes commodities traded in dollars more expensive for holders of other currencies, which in turn leads to dampened demand.