Global markets rose Monday as investors responded positively to President-elect Donald Trump‘s nomination of billionaire hedge fund manager Scott Bessent as Treasury secretary.
European and Asian markets largely tracked Wall Street‘s gains last week, reflecting optimism over a potentially market-friendly economic plan.
In Europe, Germany‘s DAX climbed 0.7 percent to 19,461.11, while France‘s CAC 40 rose 0.9 percent to 7,322.70. The FTSE 100 in Britain gained 0.4 percent to 8,291.83.
U.S. futures also indicated growth, with the S & P 500 and Dow Jones Industrial Average futures up 0.4 percent and 0.6 percent, respectively.
Uplifts in Tokyo While China Tech Shares Fall
Asian markets showed mixed results. Tokyo‘s Nikkei 225 led with a 1.3 percent gain to 38,780.14, while Seoul‘s Kospi mirrored that increase, closing at 2,534.34.
However, China‘s Shanghai Composite fell slightly by 0.1 percent to 3,263.76, and the Hang Seng in Hong Kong declined 0.4 percent to 19,150.99.
Technology shares were hit hard in China, with Tencent losing 1.5 percent and online retail giant Meituan dropping 4 percent. The People’s Bank of China maintained its one-year medium-term lending facility rate at two percent.
India‘s Sensex climbed 1.1 percent despite domestic political unrest. Demonstrations were held against billionaire Gautam Adani, who faces allegations of fraud and bribery in a U.S. indictment. Protesters have demanded arrests of Adani and his associates. However, shares of Adani Enterprises rose 4.1 percent as the Adani Group denied the allegations, after a previously plummeting 20 percent.
Who Is Scott Bessent?
Bessent, 62, is the founder of Key Square Capital Management and has a long history with Soros Fund Management (SFM), working with them on-and-off since 1991.
The Yale Graduate hails from South Carolina. At SFM, he played a significant role in the firm’s notable $1 billion profit during the 1992 Black Wednesday event, where the British pound collapsed. He later became head of SFM’s London office.
If confirmed, he would be the first openly gay Treasury secretary in U.S. history.
Analysts see his nomination as a sign that the incoming administration may favor a moderate approach to fiscal and trade policies, which has reassured investors after weeks of volatile trading.
“Bessent’s influence is expected to bring nuanced economic strategies to the forefront, potentially easing concerns over abrupt policy shifts,” Stephen Innex of SPI Asset Management said in a commentary.
Cryptocurrency: Bitcoin Lingers at $98,000
Wall Street ended last week on a strong note. The Dow Jones Industrial Average rose one percent Friday to a record 44,296.51. The S & P 500 added 0.3 percent, closing at 5,969.34, while the Nasdaq composite gained 0.2 percent to 19,003.65.
The Russell 2000 index, which tracks smaller companies, surged 1.8 percent.
Cryptocurrency prices edged lower. Bitcoin hovered near $98,000, according to CoinDesk, slightly down from its record high of over $99,000 last week.
Oil prices also fell Monday, with U.S. benchmark crude losing 65 cents to $70.59 per barrel and Brent crude dropping 65 cents to $73.98.
What Will Global Investors Be Looking out for Now?
Investors are closely monitoring whether Trump might adopt a more moderate approach to tariffs and other economic policies affected domestic and international businesses.
They will also be watching for the release of the personal consumption expenditures (PCE) index on Wednesday, the Federal Reserve‘s preferred measure of inflation.
This will be the final PCE update before the Fed’s December meeting, which could influence upcoming interest rate decisions.
Tuesday’s consumer sentiment report from The Conference Board will also be critical in gauging economic momentum.
This article includes reporting from The Associated Press
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