North American News
Market Frenzy as Dow Soars Amid GOP Election Victory
The Dow Jones Industrial Average surged by 1,500 points on Wednesday, driven by a post-election rally after Donald Trump’s apparent win over Vice President Harris. Market optimism around potential deregulation from a Republican-led administration ignited gains across major indices, as investors cheered the decisive election outcome. The Dow reached a new record high, marking a 3.6% weekly increase, with regional banks and small-cap stocks leading the charge.
Market Recap:
- S&P 500: +2.5%
- Russell 2000: +5.8%
- Nasdaq: +2.9%
In today’s trading, large- and mega-cap stocks helped maintain highs despite intermittent selling pressures. The S&P 500’s market-cap and equal-weighted indexes saw strong gains, trailing behind the Russell 2000’s impressive 5.7% rise and the S&P Midcap 400’s 3.9% jump. Regional bank stocks outperformed, with the SPDR S&P Regional Banking ETF (KRE) surging 12.5% in light of the election’s favorable results for deregulation prospects.
Upcoming Market Drivers: Thursday’s session will feature economic reports including the Initial Jobless Claims, Q3 Productivity, and Consumer Credit reports, followed by the FOMC decision at 2:00 p.m. ET and Fed Chair Powell’s press conference at 2:30 p.m. ET.
Regional Banks and Small Caps Shine Regional banks and small-cap stocks capitalized on the momentum, with Tesla leading the charge among individual stocks. Tesla shares soared 14.9%, bolstered by Elon Musk’s vocal support for Trump.
Treasury Auction Supports Rally Investor enthusiasm got an extra lift from a successful $25 billion 30-year bond auction. The high yield cleared above expectations, with demand at 2.64x the bid-to-cover ratio, surpassing the 12-auction average. Treasury yields saw slight drops following the auction, with the 2-year note yield at 4.26% and the 10-year yield at 4.40%.
Summary in brief:
- Dow Jones: New record high
- S&P 500: 2.5%
- Russell 2000: 5.8%
US treasury auctions off $25B of 30 year bonds at a high yield of 4.608%
- WI level at the time of the auction was 4.63%
- High Yield 4.608%
- WI level at the time of the auction: 4.63%
- Tail: -2.2 bps vs 6-month average 0.5 bps
- Bid to cover: 2.64X vs 6 month average of 2.4X
- Directs (a measure of domestic demand):27.1% vs. 6-month average of 16.58%
- Indirects (a measure of international demand): 62.7% vs 6-month average of 68.10%
- Dealers: 10.2% vs 5-month average of 15.32%
US MBA mortgage applications W.E. 1 November -10.8% vs -0.1% prior
- Latest data from the Mortgage Bankers Association for the week ending 1 November 2024
- Prior -0.1%
- Market index 191.4 vs 214.5 prior
- Purchase index 130.8 vs 137.8 prior
- Refinance index 513.5 vs 630.0 prior
- 30-year mortgage rate 6.81% vs 6.73% prior
Nomura now sees just one Fed rate cut in 2025 after Trump win
- Nomura adjusts Fed assumptions
Nomura anticipates that the Fed will respond cautiously to a Trump administration focused on tariffs and tax policies, which could be inflationary and growth-dampening. The Fed is expected to make two more cuts this year, with only one cut in 2025, followed by a pause and gradual easing in 2026.
Key Points:
- Economic Policy Focus: Nomura expects Trump’s second term to prioritize tariffs and tax policies, which could increase inflation and reduce growth.
- Fed Rate Cut Path: Nomura now expects the FOMC to ease twice more this year, followed by just one cut in 2025. Nomura then expect a prolonged pause, followed by 50bp of cuts in mid-2026.
- Raised Terminal Rate: Nomura has raised its terminal rate forecast to 3.625% (from 3.125%) due to anticipated inflationary pressures from tariffs.
Conclusion:
Nomura expects a cautious Fed response under a second Trump administration, with gradual cuts as the FOMC navigates inflationary pressures from tariffs. The updated terminal rate reflects a cautious stance, balancing inflation risks with the potential for slower growth.
BOC’s Rogers highlights risks around higher rates after US election
- Comments from the BOC Deputy
- There are goign to be policy changes to taxes, to trade, to immigration in the US that could lead to economic growth, which could lead to inflation and higher rates in the US
- Bank of Canada is absorbing what we’re seeing and starting to think ahead
- We will remain optimistic as things move from campaign to governing, we will see somethings settle down and work out
Canada October Ivey PMI 52.0 vs 53.1 prior
- Canada manufacturing survey from Ivey PMI
- Prior was 53.1
- Non-seasonally adjusted vs 54.5 prior
Commodities
Gold Tumbles to Three-Week Low as Trump’s Victory Strengthens The Dollar
Gold plunged to a three-week low below $2,700 per ounce on Wednesday, posting losses of more than 2.5% following Donald Trump’s decisive victory in the 2024 U.S. Presidential election. The surge in the U.S. Dollar and U.S. Treasury bond yields has put significant pressure on the yellow metal, which traded at $2,667 at the close. Trump’s win, alongside the Republican Party’s control of both the Senate and the House of Representatives, extended the “Trump trade,” lifting U.S. equities to record highs and pushing the Greenback to a four-month peak.
The victory removed much of the market’s uncertainty, causing a sharp rally in the dollar, which rose 1.54% to 105.04 on the U.S. Dollar Index (DXY). U.S. Treasury yields also spiked, adding further downward pressure on gold prices. Trump’s economic policies, which include tariffs, a wider fiscal deficit, and tax cuts, diverge from the Federal Reserve’s inflation-fighting stance, suggesting that the central bank could take a gradual approach to easing monetary policy in the future.
As the market reacts to Trump’s economic agenda, gold remains under pressure, though some analysts believe that the upcoming Federal Reserve meeting on Thursday, where a 25 basis point rate cut is expected, could provide some relief to bullion prices.
Resistance: 2,700
Support: 2,650
EIA weekly US crude oil inventories +2149K
- US weekly oil inventory data for the week ending Nov 1
- Prior was +5474
- Crude oil inventories +2149K vs +1103K exp
- Gasoline inventories +412K vs -878K exp
- Distillates inventories +2947K vs -1137K exp
- Refinery utilization +1.4% versus expectations of +0.3%
ICYMI – Aramco cut oil price to Asia and US, raised to Europe
- Overnight news
Saudi Arabia’s state run Aramco cut oil prices for buyers in Asia and the US for December.
Cut Arab Light crude grade to Asia by 25 cents / bbl
- raised to Europe by 15 cents
- to the US, cut by 15 cents (Argus sour crude)
EU News
European equities start off the Trump era 2.0 in the red
- Big challenges ahead for Europe
Closing changes:
- Stoxx 600 -0.6%
- German DAX -1.1%
- France CAC -0.7%
- UK FTSE 100 -0.2%
- Spain IBEX -2.9%
- Italy’s FTSE MIB -1.6%
PMI data was on the agenda in Europe today
- It’ll just be some noise in the background on a day like this
Eurozone October final services PMI 51.6 vs 51.2 prelim
- Latest data released by HCOB – 6 November 2024
- Prior 51.4
- Composite PMI 50.0 vs 49.7 prelim
- Prior 49.6
The euro area economy kicks start Q4 in stagnation mode with heavyweights Germany and France dragging down the overall performance. A further weakening in demand conditions is to blame but just be wary that employment conditions are also seen worsening. The latter is seeing its weakest showing since December 2020 and that will be one spot the ECB has to now watch more closely. HCOB notes that:
“Growth and stability are not the first words you would associate with the current economic situation in the euro area. But that is exactly what the services sector has been providing, with stable growth since early this year. The modest expansion of the services sector has been crucial in keeping the currency union out of recession. We are confident that service providers will continue to increase their activity, as lower inflation and higher wages mean higher private consumption, which supports demand for services. Therefore, we would also expect new business to recover, which has declined somewhat in the last two months.
“It is not clear if stagnation of the Eurozone economy will be prevented given the Composite PMI recorded 50.0 in October. Our GDP nowcast for the fourth quarter, based on the PMIs and several other indicators, signals a slight contraction, although GDP growth is still possible if the manufacturing sector improves over the next two months, for which the October figures provide some, albeit very tentative, hope.
“Christine Lagarde, President of the European Central Bank, noted at the last ECB press conference that services inflation remains rather sticky. The PMI price indicators support this view. Costs rose at a faster pace in October than in previous months, as did selling prices. In our view, this stickiness is a structural problem related to the demographically induced labour shortage, which is exerting upward pressure on wages. The ECB will find it difficult, if not impossible, to achieve the 2% inflation target in a sustainable manner in this environment.”
Eurozone September PPI -0.6% vs -0.6% m/m expected
- Latest data released by Eurostat – 6 November 2024
- Prior +0.6%
Looking at the details, most of the drop comes from energy prices (-1.9%). If you strip that out, producer prices were actually flat on the month in September. Breaking down the other components, there were rises in prices for durable consumer goods (+0.2%) and non-durable consumer goods (+0.2%). That is slightly offset by a drop in prices for capital goods (-0.1%) with intermediate goods keeping flat.
Germany October final services PMI 51.6 vs 51.4 prelim
- Final data released by HCOB – 6 November 2024
- Final Services PMI 51.6 vs. 51.4 expected and 50.6 prior.
- Final Composite PMI 48.6 vs. 48.4 expected and 47.5 prior.
Key findings:
- HCOB Germany Services PMI Business Activity Index at 51.6 (Sep: 50.6). 3-month high.
- HCOB Germany Composite PMI Output Index at 48.6 (Sep: 47.5). 3-month high.
- New business falls for second month running, leading to further job losses.
Comment:
Commenting on the PMI data, Jonas Feldhusen, Junior Economist at Hamburg Commercial Bank, said:
“Germany’s service sector remains resilient, undeterred by the sluggishness in manufacturing. Activity in the sector continues to rise steadily, maintaining modest growth and even gaining slight momentum in October. This raises the question of where this momentum originates, given that order volumes have been declining since September, and backlogs are gradually being reduced.
Considering the underlying weakness in demand, firms are showing a tendency to downsize their workforce. Nonetheless, German service providers are optimistic about the future. The recent release of retail sales figures for June, July, and August—delayed due to technical issues at the Federal Statistical Office—paints a positive picture.
The data suggest that households leveraged their real wage gains over the summer to increase consumption, implying that improved purchasing power is starting to have an effect. These encouraging retail sales figures may well be driving more optimistic future output expectations among service providers.
Price dynamics within the sector remain steady. Input price inflation increased slightly in October. Nevertheless, the trend in input price inflation has been moderating in the last few months. This trend aligns with the gradual easing of wage pressures, as seen in the official data. Output prices, meanwhile, are seeing more moderate increases.”
Germany September industrial orders +4.2% vs +1.5% m/m expected
- Latest data released by Destatis – 6 November 2024
- Prior -5.8%; revised to -5.4%
France October final services PMI 49.2 vs 48.3 prelim
- Latest data released by HCOB – 6 November 2024
- Prior 49.6
- Composite PMI 48.1 vs 47.3 prelim
- Prior 48.6
The revisions are positive but still marks a drop from September. The details reveal the sharpest drop in new business since January with growth expectations also declining markedly compared to the month before. Cost pressures were subdued but prices charged by French service firms were still on the higher side though. HCOB notes that:
“France’s fourth quarter is off to a poor start, with the services sector continuing to contract. The HCOB PMI dipped to 49.2 in October, marking its lowest point since March. While GDP growth surprised on the upside in Q3 with a 0.4% rise over the previous quarter, it’s now clear that economic momentum is waning. The GDP uptick was largely driven by one-off effects from the Olympic Games in Paris, as shown by the HCOB PMIs, and as demand fades, French service providers — and the wider economy — will struggle to find a new growth catalyst.
“Service providers in France are struggling to lift their charges. Inflationary pressures are benign in France, according to the HCOB PMIs, and this is further reinforced by a notable drop in France’s Consumer Price Index in September — annual inflation fell to 1.1% overall and 1.4% for core inflation, well below the ECB’s target. However, with operating costs still rising much faster than selling prices, this is one of the ongoing challenges for the surveyed businesses, intensifying the strain on the sector.
“Nevertheless, the outlook for French service providers is cautiously optimistic despite growth expectations weakening in October. Current conditions remain challenging, with both domestic and international orders continuing to decline, alongside a hiring freeze. However, there are modest signs of encouragement in future business activity, though the trend is weaker than the previous month and remains well below the historical average. Many companies report that intensified competition and a shrinking customer base are complicating recovery efforts.”
Spain October services PMI 54.9 vs 56.8 expected
- Latest data released by HCOB – 6 November 2024
- Prior 57.0
- Composite PMI 55.2
- Prior 56.3
The growth momentum in Spain’s services sector weakened in October but is still a solid reading nonetheless. Both sales and demand showed improvements, contributing to the strong activity. The added good news is that jobs growth also hit a 18-month high in the latest report. HCOB notes that:
“Spain’s economy continues on its positive trajectory. According to preliminary estimates from the national statistics office (INE), GDP grew by an impressive 0.8% quarter-on-quarter (QoQ) in the third quarter. While the Composite HCOB PMI showed a slight slowdown in June and July, it displayed solid growth signals again in September and October. This trend suggests that growth of up to 3.0% could be achievable for 2024. The HCOB PMIs, in particular in services, indicate a strong start to the fourth quarter.
“The Spanish service sector remains a significant growth driver. The respective HCOB PMI in October stands well above the long-term average, reflecting robust activity supported by strong demand from both domestic and international markets. This demand not only fuels business activity but also heightens labour needs in the sector: companies continue to seek additional workers to meet the growing demand. The Employment Index reached its highest level in 18 months, underscoring confidence and momentum in services. Moreover, favourable conditions are boosting companies’ expectations for the coming months, with continued strong demand anticipated.
“Input price trends remain a critical issue in the Spanish services sector, impacting inflation dynamics. Core inflation, which excludes energy and food prices, remains above the headline inflation rate and picked up sharply on the monthly rate in October. This discrepancy illustrates how persistent cost increases in the services sector significantly contribute to higher core inflation. Rising wages are a primary driver of this trend, with many service companies continuing to report wage pressures. To mitigate these burdens, companies often pass on the additional costs to consumers, further intensifying price increases in this sector.”
Italy October services PMI 52.4 vs 50.5 expected
- The latest data from HCOB – 6 November 2024
- Services PMI 52.4 vs. 50.5 expected and 50.5 prior.
- Composite PMI 51.0 vs. 49.7 prior.
Key findings:
- New business rises modestly following two successive months of decline.
- Activity growth accelerates to four-month high.
- Employment levels broadly unchanged in October.
Comment:
Commenting on the final PMI data, Jonas Feldhusen, Junior Economist at Hamburg Commercial Bank, said:
“Italy’s economy continues to exhibit signs of stagnation. In the third quarter, GDP growth remained flat at 0.0% quarter- over-quarter, lagging behind the growth rates seen in Spain, France, and perhaps unexpectedly, Germany. However, the HCOB Composite PMI offers cautious optimism as we enter the fourth quarter, as it has edged back above the growth threshold, largely driven by demand within the services sector.
This development underscores a distinct bifurcation within the Italian economy: while the service sector is gaining momentum, manufacturing remains under pressure. The recent growth in Italy’s service sector is primarily fuelled by a rise in domestic demand. Unlike the previous two months, total new orders increased, injecting some fresh momentum into the sector.
Conversely, new export business continued to trend downward, which companies attribute to the persistent challenges in the current geopolitical and economic climate. Outstanding business has been declining for just over a year, prompting firms to exercise caution in hiring. This restraint is further compounded by rising personnel costs, which weigh on profit margins.
On the pricing front, little has changed from the previous month. Input costs continued to rise, largely due to wage increases as anecdotal evidence shows, and companies have managed to pass some of these costs on to end consumers. However, it remains uncertain whether this trend is sufficient to sustain structurally elevated inflation rates.”
UK October construction PMI 54.3 vs 55.5 expected
- Latest data released by S&P Global – 6 November 2024
- Construction PMI 54.3 vs 55.5 expected and 57.2 prior.
Key findings:
- Civil engineering remains best-performing category, followed by commercial work.
- Renewed decline in house building.
- Business optimism slips to ten-month low.
Comment:
Tim Moore, Economics Director at S&P Global Market Intelligence, said:
“The construction sector signalled another month of solid output growth in October, despite being unable to match the highs seen in September. Business activity expansion was once again led by civil engineering work. Survey respondents widely commented on strong demand for renewable energy infrastructure projects.
Commercial construction activity also increased again, albeit at the slowest pace since the current phase of expansion began in April. Improving domestic economic conditions helped to boost demand, but some construction companies reported delayed spending decisions ahead of the Autumn Budget. October data meanwhile indicated a decline in overall residential construction activity for the first time since June.
Government policy uncertainty, fragile consumer confidence and elevated borrowing costs were all constraints on demand for house building projects. Total new work expanded at a solid pace in October, adding to signs of a robust improvement in order book pipelines across the construction sector in the second half of 2024.
As a result, construction companies added to their payroll numbers at an accelerated pace. However, business optimism remained relatively subdued in comparison to the highs in the first half of the year, with output growth expectations now the lowest since December 2023.”
Lagarde wants bigger banks
- Highlights from Lagarde’s speech in Frankfurt:
- Celebrating 10 years of Single Supervisory Mechanism (SSM)
- Bank capital ratios improved significantly: CET1 up from 12.7% (2015) to 15.8% (mid-2024)
- Euro area needs more banking consolidation – only 2 euro area banks rank in global top 10
- Banks need to help fund €5.4 trillion in green/digital/defense investments (2025-2031)
- Pushes for reduced national ring-fencing of capital/liquidity
- Wants bigger securitization market (US market 3x larger than Europe’s)
- Reducing the ring-fencing of capital and liquidity along national lines would allow funds to flow freely within banking groups and facilitate lending across borders
Goldman Sachs lowers euro area 2025 GDP growth forecast to 0.8% from 1.1% previously
- The downward revision owes to Trump’s election win
Goldman Sachs cites potential tariff risks on the euro area following his election win today. No surprises there as this is also a key factor weighing on the euro currency.
UK government confirms spread of bird flu in commercial poultry
- Passing on this info from Reuters ICYMI.
UK government said on Tuesday it has confirmed a strain of the H5N5 bird flu virus in commercial poultry
- At a premises in Yorkshire
- All poultry on the infected premises will be humanely culled and a three kilometer protection zone and a 10km surveillance zone has been put in place surrounding the premises
Asia-Pacific-World News
Chinese yuan feels the pinch with Trump set to win US presidency
- The yuan falls to its weakest since mid-August against the dollar
The onshore yuan is sinking to its lowest since mid-August against the dollar now, with USD/CNY on the verge of hitting 7.17 on the day. It comes amid a surging dollar but also some bad news for China with Trump set to win the presidency.
More tariffs and trade conflict will mean added concerns for China’s slowing economy. And markets will want to see much, much more from Beijing especially after they floated adding to more fiscal stimulus if Trump was to win.
PBOC sets USD/ CNY mid-point today at 7.0993 (vs. estimate at 7.1011)
- PBOC CNY reference rate setting for the trading session ahead
- PBOC injects 17bn yuan via 7-day RR, sets rate at 1.5%
- 431bn yuan mature today
- net drain is 414bn yuan
China state banks seen selling USD/CNY – intervention to slow yuan drop
- People’s Bank of China instructing this
Major Chinese state banks selling USD/CNY trying to contain the yuan losses.
Australian Treasury official – headline inflation slowing
- Secretary to the Australian Treasury, Dr Steven Kennedy, is giving testimony in the Australian parliament
In brief:
- Interest rates will come down, but not to pre-pandemic levels
- household consumption is subdued
- households are rebuilding savings
- underlying inflation is useful for the direction of inflation, headline inflation has shown a “material” fall in cost of living pressures.
- a fall in cost of living pressure has been shown in headline inflation
- underlying inflation showing the direction of inflation
- says trade off between lower inflation and jobs
New Zealand employment report recap – nothing to shift the RBNZ’s view
- Young people leaving New Zealand in droves
Westpac summary:
- we don’t think that there’s anything in today’s figures that would shift the RBNZ’s thinking for its next policy decision at the end of this month
- New Zealand’s labour market continues to weaken, reflecting a prolonged recession.
- Unemployment rose from 4.6% to 4.8% in Q3, the highest since December 2020, but below expectations due to a drop in labour force participation.
- Employment fell by 0.5%, aligning with Monthly Employment Indicator (MEI) and Quarterly Employment Survey (QES) data.
- Labour force participation dropped from 71.7% to 71.2%, largely due to young people (15-24 years) exiting the workforce as migration rebounds.
- Wage growth slowed, with Labour Cost Index (LCI) up 0.6% for the quarter; public sector wages rose by 0.9%.
- Wage and employment trends suggest easing inflation pressures, though unlikely to alter the Reserve Bank of New Zealand’s upcoming policy decision.
New Zealand Q3 unemployment rate 4.8% (expected 5.0%, prior 4.6%)
- New Zealand jobs data for Q3 2024
In the report:
- employment change fell more than expected
- the unemployment rate rose, but not by as much as expected …. but the participation rate fell so that’ll take some of the gloss, if there is any, off the jobless rate
Bank of Japan minutes – BOJ will continue rate hikes if economic & price forecasts met
- Bank of Japan September 2024 meeting minutes
In summary :
- Rapid decline in market sentiment in August 2024 due to U.S. economic slowdown fears. Japan’s markets particularly volatile due to quick position adjustments.
- U.S. economy’s future remains unclear, affecting global economic stability. Concerns over potential divergence in economic cycles among advanced economies.
- U.S. growth led by private consumption but faces inflation uncertainties; potential risks if high expectations for AI decline.
- On Japan’s economy – Moderate recovery aligned with July 2024 outlook, resilient wage and consumption growth, though impacted by external factors.
- Bank of Japan (BOJ) plans gradual policy rate increases, cautious of overseas economic uncertainties, especially from the U.S.
- Plans to enhance transparency with market participants, emphasizing data-driven decisions over projections to avoid market surprises.
Japan October services PMI 49.7 (preliminary was 49.3)
- Prior was 53.1
Japan Jibun Bank / S&P Global Services PMI (October) 49.7
- flash was 49.3
- prior was 53.1
Composite 49.6
- prior 52.0
The report notes that momentum in Japan’s service sector faltered sharply at the beginning of the fourth quarter of 2024, as companies experienced their first contraction in four months. Although the decline was slight, it coincided with a slowdown in overall new business inflows, heavily impacted by a significant drop in exports.
Businesses remained hopeful that this dip was temporary, maintaining a positive outlook overall. However, optimism was at its lowest in over two and a half years, influenced by growing concerns over labor shortages.
Alongside a steadily shrinking manufacturing sector, October’s decline in service output led to the first contraction in private sector activity since June, marking the most significant drop in nearly a year. Further adding to this concern was stagnant new orders, affected by weak demand in manufacturing.
Overall confidence in the private sector’s performance also slipped, with positive sentiment at its lowest level since January 2021.
Reuters Tankan shows manufacturing index dipping in November to +5 (prior +7)
- Reuters Tankan
November manufacturing index +5
- prior +7 in October
Non-manufacturing +19 in November, easing for the 5th consecutive month
- prior +20
Outlooks:
- Manufacturing index seen at +6 in February
- non-manufacturing seen at +25
- “Japanese automakers’ slump in the Chinese market is a concern for the auto parts business and environment-related products remained lacklustre due to China’s sluggish market”
- “Although there is demand, material prices are gradually rising, putting pressure on profit”
- some respondents mentioned clients delaying investment decisions before the outcome of the U.S. presidential election
- extreme weather hurting service-sector confidence. One bright spot supporting sentiment was inbound tourism.
Cryptocurrency News
Coinbase Pushes for Regulatory Change as Trump’s Win Shakes Up Crypto Landscape
In the wake of Donald Trump’s victory, Coinbase’s Chief Legal Officer, Paul Grewal, has urged the U.S. Securities and Exchange Commission (SEC) to transition from its aggressive litigation stance towards the crypto industry to one that fosters open dialogue and forward-thinking regulations. Grewal’s comments reflect a growing discontent within the crypto community regarding the SEC’s enforcement actions.
Trump’s promise to remove SEC Chair Gary Gensler could signal a shift in regulatory tone, potentially paving the way for a more crypto-friendly approach. One name frequently mentioned in discussions about a possible replacement is SEC Commissioner Hester Peirce, known for her supportive stance on crypto and her “Crypto Mom” moniker among industry advocates.
Simultaneously, Coinbase is under fire for reportedly charging astronomical listing fees, with Justin Sun, the founder of Tron, alleging a $300 million fee to list Tron on the platform. Andre Cronje, founder of Fantom Network, echoed similar claims, saying the exchange demanded up to $300 million for listing Fantom, contrasting this with Binance, which purportedly charges no fees. However, Coinbase CEO Brian Armstrong has stated that listing assets on the platform is free, which has raised further concerns about transparency in the industry.
Ethereum Eyes New All-Time High Amid Post-Election Surge Following Trump’s Victory
Ethereum surged by over 8% in the 24 hours following Donald Trump’s election as U.S. President, showing strong potential to reach a new all-time high. The price of ETH has risen to $2,660, driven by optimism surrounding Trump’s campaign promises to end the government’s crackdown on crypto and to fire SEC Chair Gary Gensler. Investors are now anticipating a potential surge in decentralized finance (DeFi) activity, which could drive Ethereum to new heights.
Ethereum stands out as one of the major beneficiaries of Trump’s win, with his promises of regulatory clarity for the DeFi landscape fueling investor confidence. This comes at a crucial time as Ethereum has been hindered by unclear regulations under the previous administration. Many in the industry now believe that Trump’s focus on ending regulatory overreach could catalyze Ethereum’s growth, particularly in DeFi, an area where Ethereum has been the dominant platform.
Since Trump’s victory, the DeFi market has experienced a substantial rebound, with the sector’s market cap rising more than 15%. As Ethereum remains the backbone of many DeFi projects, this resurgence could result in more demand for ETH, higher transaction fees, and a potential rise in the number of tokens burned, all of which could lead to a significant price increase.
Looking ahead, Ethereum could aim for a new all-time high if it successfully reclaims the key resistance level at $2,817, which has held firm since August. On the weekly chart, Ethereum has been making bullish moves, bouncing off the 100-day and 200-day moving averages. The rally is expected to continue if Ethereum can break through this key level.
Resistance: 2,817
Support: 2,660
Bitcoin Surge Accelerates, Soaring to New Heights After Trump’s Election Win
- Bitcoin is up 9.5% and has found bids on every dip
Bitcoin surged 9% on Wednesday, reacting strongly to Donald Trump’s victory in the U.S. presidential election, propelling the digital asset to a new record high. The price shot to $71,468 before briefly pulling back, now trading at $71,163 as enthusiasm for Trump’s pro-crypto stance boosted sentiment. The cryptocurrency is approaching its November 1 high of $71,584, with the market staying bullish in the wake of Trump’s win, as he has been a vocal supporter of the digital currency sector.
After reaching a new peak of $75,411, Bitcoin saw some profit-taking, bringing the price down to $72,700, which marks the lower end of the current consolidation range. Despite this pullback, larger bullish momentum remains intact, with the market still benefiting from Trump’s positive rhetoric toward crypto.
Bitcoin is attempting to regain its position above the $74,000 mark, a psychological level that also aligns with the upper boundary of its bull channel. A sustained close above this zone would reinforce the bullish outlook, supported by strong momentum and favorable moving averages (MA).
Key support levels are now at $73,900, where the broken channel resistance has turned into support, along with the 20-day Bollinger Band at $72,930 and the lower range at $72,700. The lower breakpoint sits at $70,000, a key psychological support level. If the recent high is surpassed, the next targets lie at $76,231 and $77,847, with the $80,000 round number being the ultimate barrier.
Resistance: 75,411; 76,231; 77,847; 77,850
Support: 73,900; 72,930; 72,700; 72,000
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