Dollar soars, stocks rally as Trump claims victory

The dollar surged, stocks rallied, and bitcoin struck a record high on Wednesday as the world gears up for a Donald Trump presidency that analysts say could rekindle inflation.

The Republican candidate made a stunning political comeback as he defeated Vice President Kamala Harris to return to the White House, four years after losing it to Joe Biden.

Well before several U.S. media outlets declared Trump the winner, Wall Street stock futures soared hours ahead of the market's opening bell, as the former president confidently claimed a "magnificent" victory.

Europe's main equity indices jumped in morning trading, while Asia diverged, with Chinese stocks hit by expectations that Trump would impose tariffs on Chinese imports.

Market focus was also on plans to stimulate China's economy, the world's second biggest after the United States.

"Trump trade is in full swing," noted Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

A Trump win is expected to result in sweeping U.S. tax cuts, seen as inflationary and therefore leading to fewer interest-rate cuts by the Federal Reserve in the coming months.

That boosted the dollar against major rivals, with the greenback rising more than 1.5 percent against the euro.

The Fed announces its latest rate decision on Thursday.

"With the Federal Reserve expected to announce a likely 25 basis-point cut tomorrow, we are already seeing expectations reined in for the December meeting given the perception that Trump's policies are inherently inflationary," forecast Joshua Mahony, analyst at Scope Markets.

U.S. Treasury yields also gained support on Wednesday.

"Investors are bracing for tariffs and a clampdown on U.S. immigration, policies considered to be...