Trump's election victory: Financial markets in turmoil - Bitcoin and dollar are rising!

Trump's election victory: Financial markets in turmoil - Bitcoin and dollar are rising!

Donald Trump is back in the White House and the financial markets are reacting with a bang! Bitcoin has excited investors with a record high of 70,366 euros. The major US indices – Dow Jones, S&P 500 and Nasdaq 100 – are also celebrating a rise, while the MSCI World is up over 3 percent. A clear victory for Trump that stirs up the markets!

But not everything that glitters is gold! While the US dollar is rising on the prospect of higher interest rates - one euro now costs around $1,076 - the price of gold is trending slightly downwards. A troy ounce of gold is around $2,664, which dampens demand as commodities are traded in US dollars and therefore become more expensive in other currencies.

European markets react cautiously

In Europe, however, the mood remains subdued. The DAX briefly climbed to 19,563 points, but fell back again in the afternoon. German car manufacturers are being hit particularly hard: Mercedes-Benz and BMW are recording share price losses of over 6 percent. The threat of punitive tariffs on German imports that Trump has announced casts a shadow over export-oriented companies and could put a significant strain on their business.

Market reactions are normal, but the current fluctuations are not alarming. Price fluctuations are commonplace and can occur even without special events such as the US elections. Don't let dramatic headlines unsettle you - the financial world remains in motion!