US and Asian Stocks Rally After Trump’s Election Victory But European and BSI Fall

The BLOM Stock Index (BSI) compiled by BLOM Invest Bank daily declined weekly by 0.5% to 2,161.91 points on November 8^th, 2024.

On the Beirut Stock Exchange (BSE), the real estate sector dominated trading, accounting for 99.65% of the exchange’s total trading value, while the remaining were by the banking sector (0.23%) and industrial sector (0.12%). The most noteworthy trades throughout the mentioned period included:

As for the BLOM Preferred Shares Index (BPSI), it remained constant at 27.78 on November 8^th, 2024.

*Prices are as of the time of writing this report

US stock markets rallied this week as Donald Trump won the US presidential elections and the Republican Party regained the control of the Senate. Traders are also optimistic that Trump’s administration will perform tax rate cuts leading to increase in corporate profits, increase tariffs and anticipating boosting economic growth. In addition, Federal Reserve performed a 25 bps interest rate cut on Thursday as anticipated to become 4.75%.

*Prices are as of the time of writing this report

Across the Atlantic, main European stock markets decreased over the course of the week as investors digesting the impact of Donald Trump US Presidential election victory as fears escalated from his expected policies especially rise in tariffs that will affect the most autos and chemicals sectors. United Kingdom’s FTSE 100 declined throughout the week by 1.18% to reach 8,080.38 as concerns rose after Trump’s victory in addition to the 25 bps interest rates cut from Bank of England (BoE) as anticipated but higher inflation and economic growth forecasts following the new government’s budget. Similarly, French CAC 40 and German DAX dropped over the course of the week by 0.7% and 0.16% respectively to record 7,357.59 and 19,224.75.

*Prices are as of the time of writing this report

Asians stock markets rallied in the week ending November 8^th, 2024. China’s equities led the increase by 5.51% to reach 3,452.3 due to several reasons. First, the PMI data showed improvement in business activities reaching a four-month high in October supported by growth in services sector. Also, an improving macroeconomics outlook in China as the Premier Li Qiang conveyed confidence that the country could meet the GDP target after a series of fiscal and monetary stimulus measures from Beijing. Furthermore, traders hoped that the prospect increase in tariffs by the upcoming Trump administration could push Beijing to be more aggressive in stimulus measures while awaiting the developments from the National People’s Congress committee five days meeting this week which is considering raising local government debt to finance increased spending.

Second came Japanese NIKKEI that increased by 3.8% to reach 39,500.37 driven by Federal Reserve’s 25 bps rate cut in addition to the results of the US Presidential elections. Similarly, Hang Seng rose by 1.08% to record 20,728.19 driven by Federal Reserve’s rate cut, potential stimulus as China’s legislative session ends today, in addition to the USD 1 billion fund established by Saudi Arabia’s Public Investment Fund to support Hong Kong-linked firms expanding into the Middle East.

*Prices are as of the time of writing this report

As for the MSCI Emerging Market index, it rose this week by 1.63% to record 1,140.54 points.

*Prices are as of the time of writing this report

Arab stock markets rallied in line with the global trend with Egyptian EXG 30 and Abu Dhabi Securities Exchange leading by 1.99% and 1.23% followed by Saudi Stock Exchange (TASI) by 0.9%.

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