Global Financial Markets Continue To Rally After Trump Victory

Most markets in Asia rallied with extraordinary gains on November 10 after Trump's conciliatory acceptance speech a day earlier eased concerns and reversed initial declines in share prices. (file photo)

Global financial markets continued to rally on November 10 after the initial shock about U.S. President-elect Donald Trump's surprise election victory receded.

Most markets in Asia rallied with extraordinary gains on November 10 after Trump's conciliatory acceptance speech a day earlier eased concerns and reversed initial declines in share prices.

European stocks hit a two-week high on November 10 as investors focused on Trump's plans for tax cuts, bank deregulation, and higher spending on infrastructure and defense.

In New York, the Dow Jones industrial average rose by 1.2 percent on the day, closing at a record high of 18,807 points. However, the Nasdaq index lost 0.8 percent on the day -- reflecting concerns about how Trump's trade policies could impact tech stocks in the long run.

Analysts said traders were, for the moment, setting aside longer-term concerns about whether Trump might risk a global trade war by imposing punitive tariffs on exports from China and Mexico.

But analysts warned that volatility is likely to be high in the weeks leading up to Trump's January 20 inauguration.

The U.S. dollar strengthened to its highest level in two weeks on November 10 and the price of oil rose amid signs that Trump will reverse budget austerity policies that Western governments have followed since the 2008 global financial crisis.

Based on reporting by Reuters and AP