Noting the requirements, here’s a rewritten article tailored for a U.S. audience:
European Markets Brace for Tumultuous Start After Trump Victory
European stock markets are poised for a shaky start on Monday, following the controversial re-election of Donald Trump as President of the United States. While European markets closed higher on Friday, capping a tumultuous month dominated by Trump’s win, analysts anticipate turbulence following his victory.
French and German markets are facing particular uncertainty. Despite the DAX in Germany climbing nearly 2% in November, and France‘s CAC 40 slipping over 2%, the potential for political unrest remains a concern.
This volatility comes as global inflation figures raise eyebrows. Eurozone inflation hit 2.3% in November, exceeding expectations. Economist Bert Colijn of ING believes the ECB will closely watch these figures in deciding whether to adjust interest rates. Quoting Colijn, “The [inflation] figure will be high again in December, but the picture will improve early next year.”
Meanwhile, political tensions in France remain a focal point. Recent budget disputes in Paris, coupled with far-right leader Marine Le Pen’s threats to topple the government, have added to the anxiety. "Is the far-right about to dump the Barnier government? We will know more next week, but it could clearly push Europe into a new crisis, as France is not just ‘any’ country in Europe. Together with Germany, it is the axis of Europe,” said investment strategist Frank Vranken of Bank Edmond de Rothschild.
Adding to the uncertainty, a report on Friday indicated that S&P might downgrade France’s credit rating, though this proved unfounded.
Despite the anxieties, some positive signs emerged on Friday. In Brussels, Belgian energy giant Elia saw a 1.1% increase after a positive quarterly update. Amsterdam saw a strong performance from insurers and semiconductor companies, with Aegon surging 3.4%, ASR rising 1.6%, and chipmakers Besi, ASMI, and ASML gaining between 2.1% and 2.4%. Chipmakers had a good day in other European markets, with Infineon gaining 3.0% and STMicroelectronics scoring a 2.2% rise.
In Paris, Renault led the way with a 2.3% surge and luxury brands like LVMH and Hermes also performed well, each gaining over 1%. Frankfurt saw MTU Aero Engines soar 2.9% after announcing further revenue growth in 2025 and an expansion, which Frankfurt investors rewarded with confidence.
However, offsets to the positive news included MTU competitor Thales dropping over 1% in the CAC 40. Pharmaceutical company Sartorius experienced the biggest losses in the DAX, with a 1.6% decline.
Across the Atlantic,
U.S. markets are also facing a potentially softer start on Monday. Friday saw the Dow Jones index break the 45,000 point mark for the first time, though closing slightly below that historic milestone. The S&P 500 also reached a record high.
November proved a boom period for U.S. markets, with the Nasdaq gaining over 6%, the S&P 500 rising 5.7%, and the Dow soaring 7.5%. Earlier this month, the Dow broke through the 44,000 point mark for the first time, fueled by post-election optimism following Trump’s victory.
This “Trump trade,” as investment strategist Frank Vranken of Bank Edmond de Rothschild terms it, has driven market gains. However, Vranken cautions, "Overall, there is a risk of higher inflation and higher debt," and that hopes surrounding Trump’s policies might give way to a “wait-and-see” approach.
Oil prices took a downward turn last week, falling 3% after Israel and Hezbollah agreed to a cease-fire in Lebanon. OPEC+ postponed a planned meeting from Sunday to next Thursday.
On Friday major retailers in the U.S. saw their share prices rise: Amazon.com gained 1.1%, Target 1.8%, and Walmart edged up 0.7%. Chip equipment manufacturers Applied Materials & Lam Research saw stocks rise 2-3% on reports that the U.S. may impose stricter sanctions on sales to China. However, crypto trader MicroStrategy dipped slightly, even as bitcoin rebounded close to $97,000 on Friday, after a drop earlier in the week.
Asian Markets Upbeat
Asian markets were buoyed on Monday by robust Chinese industrial growth. The purchasing managers’ index jumped to a strong 51.5 from 50.3.
Currency PowerPlays:
The euro/dollar stood at 1.0521 on Monday morning, a slight drop from Friday’s 1.0572. The U.S. dollar was strong against the yen, trading at 158.56.
2024-12-02 06:04:00
#European #stock #markets #expected #open
## World Today News: Expert Interview
**”Trump Victory Shakes European Markets: What Lies Ahead?”**
**World Today News:** Good morning, and welcome to World Today News. Today we discuss the rippling effects of Donald Trump’s re-election on European markets, which are bracing for a potentially volatile start to the week.We are joined by renowned investment strategist **frank Vranken of Bank Edmond de Rothschild** to shed light on the situation.
Mr. Vranken, thank you for joining us.
**Mr. Vranken:** It is indeed my pleasure to be here.
Let’s dive right in. European markets closed on a relatively positive note Friday despite the uncertainty surrounding Trump’s victory.Yet, analysts predict turbulence. What are your thoughts on the immediate outlook for European markets?
**Mr. Vranken:**
The initial reaction to Trump’s re-election was indeed cautious optimism, particularly after a particularly volatile month leading up to the election. However, the underlying concerns remain.We are seeing global economic anxieties amplified by Trump’s unpredictable policies, his protectionist stance, and potential trade rifts. this uncertainty will undoubtedly contribute to volatility in the coming weeks.
You mentioned protectionist policies. Germany and France, considered the engines of the European Union, are expected to face particular challenges.Can you elaborate on these vulnerabilities?
**Mr. Vranken:** both Germany and France, heavily reliant on exports, are directly vulnerable to any potential trade wars sparked by Trump’s policies. We saw this tension during his previous term,and it’s likely to be exacerbated.
Moreover, France faces internal political challenges. The recent budget disputes and the rising prominence of Marine Le Pen’s far-right movement add another layer of complexity. A political crisis in France would undoubtedly send shockwaves through the European Union and further destabilize markets.
Adding fuel to the fire, we are seeing mounting inflation figures across Europe.How concerned should investors be about this trend, and will the European Central Bank intervene?
**Mr.Vranken:**
The surge in European inflation is a serious concern. Reaching 2.3% in November, it surpasses ECB targets and raises the specter of rising interest rates. While the ECB might feel pressure to take action, they will likely remain cautious and monitor the situation closely. As economist Bert Colijn of ING has pointed out, we might see a normalization of inflation early next year, which could offer the ECB some breathing room.
Looking ahead, what are the key factors that investors should be watching closely in the coming weeks?
**Mr. Vranken:**
Three key factors will determine the trajectory of European markets:
* **Trump’s first moves:** What policies does the Trump administration prioritize in its second term? Will we see a continuation of protectionist measures, or will there be a shift in strategy?
* **Political stability in France:** Will Le Pen’s political maneuvering result in a government crisis?
* **ECB’s response to inflation:**
Will the ECB take decisive action on interest rates, or will they maintain a wait-and-see approach?
Thank you for your insightful analysis, mr. Vranken. We greatly appreciate your time and expertise.
