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The business market is registering abnormal oscillations after the results of the elections were announced.
STATES CHRONICLE – Since last week’s election, government bonds have been registering a surge. The 2-year note managed to rise by over 1 percent, while the 30-year note registered a rise of 3 percentage points. Even better, the United States is not the only one registering an oscillation in the business market sector.
The 30-year note of Italy managed to rise by 1 percent. Germany registered the same surge after six months of stagnation.
President-elect Donald Trump managed to convince the world that his administration will boost the American economy by heavily investing in infrastructure. This move will generate a rise in Federal Reserve rates, making investors abandon bonds and focus their attention on equities.
Since the first item on the President-elect’s list is the repealing of the Affordable Care Act, insurance companies are predicting a fruitful 2017. However, this is not the only industry that will gain profit from the future administration. As Mr. Trump stated on numerous occasions, he will be focusing on American industry, a sector that has suffered at the hands of green energy and environmental restrictions.
The copper industry’s market values rose higher than it has in five years during the last week, a sign that Donald Trump’s campaign promises are starting to take shape.
Furthermore, copper is not the only metal that is registering record share values. All metal stocks have been skyrocketing, the market recording streaks that haven’t been matched in more than three decades.
On the other hand, companies such as Amazon are already paying for their Secretary Clinton endorsement as their share value has significantly dropped since last week, Jeff Bezos’ company losing over $30 billion.
The FANG ban is also taking a toll on Facebook, Netflix, and Google, their revenue continuously plummeting ever since last Tuesday when Hillary Clinton lost the presidential race.
However, the biggest surprise yet is gold. Even though all forecasts were centered around the idea that the precious metal will reach record values, its market value dropped by over 10 percent.
Contrary to popular belief, the future administration might succeed in jumpstarting the economy as the US dollar is already registering off the chart values. In a turn of events similar to that of the elections, the dollar index surged over the 100-handle limit, while the euro’s value dropped at a level that hasn’t been registered in over a year.
Image source: Pixabay
