Photo credit: Yuki Iwamura/Bloomberg

Donald Trump has secured victory in the 2024 US presidential election, decisively defeating Democrat Kamala Harris and returning to the White House as the first former president to do so in over 130 years. 

Trump, alongside his vice-presidential pick JD Vance, celebrated the win at a rally in Florida, where he pledged to usher in “a new golden age for America.” His party also achieved a projected majority in the Senate, strengthening Republican influence in Washington. 

The victory, reported by the BBC, has sparked widespread market activity, with significant shifts in global stocks, the U.S. dollar, and Bitcoin.

Following Trump’s win, the US dollar has surged by 1.5% against currencies like the euro, pound, and yen. Asian markets responded with Japan’s Nikkei 225 closing 2.6% higher, while Australia’s ASX 200 rose by 0.8%. US markets are also expected to open strongly, after Tuesday’s close saw gains of over 1% across the Dow Jones, S&P 500, and Nasdaq. 

Market analysts anticipate that Trump's second term could bring new economic policies, including potential tax cuts and trade tariffs, which may influence inflation and U.S. interest rates. Lindsay James, an investment strategist at Quilter Investors, highlighted that Trump's policies could increase inflationary pressure, likely affecting bond yields and impacting Federal Reserve strategies.

Bitcoin, in particular, has reacted strongly to the election outcome, reaching a record high of $75,371.69, according to CoinMarketCap data. 

Trump has pledged to make the U.S. a global leader in cryptocurrency, and investors have rallied, with Bitcoin rising by over $6,000 in a single day. Notably, Trump’s ally Elon Musk, a long-time cryptocurrency advocate, supported the campaign, and Musk’s company Tesla saw its Frankfurt-listed shares surge by 14% on Wednesday. 

Trump’s plans include appointing Musk to lead a government audit on waste, potentially giving crypto-related policies a significant boost.However, economic experts warn of potential market turbulence due to Trump's trade and foreign policies. 

Trump’s protectionist stance, particularly on China, has raised concerns in Asia, where tariffs could impact US imports. 

Katrina Ell of Moody's Analytics cautioned that Trump’s policies may strain US-China trade relations, especially concerning Taiwan, a critical player in global semiconductor production. The Shanghai Composite and Hong Kong’s Hang Seng index both fell, with the latter down 2.23%, as Asia reacted to Trump’s projected win.

Investors are now eyeing additional events this week, including the US Federal Reserve’s rate announcement on Thursday and an update from Chinese officials on Friday regarding strategies to address the country’s economic slowdown. 

With Trump’s return to the White House, analysts are closely monitoring how his administration’s policies will shape the economic landscape, both domestically and globally.