The copper prices has hit its highest level since July 2015, up 5% today, thanks to Trump’s promise to rebuild America’s infrastructure.
And shares in two mining companies, Antofagasta and Vedanta, have both soared by 14% as investors anticipate a new fiscal boost next year.
Ole Hansen, head of commodity strategy at Saxo Bank, says copper is the ‘big winner’ from Trump’s victory (which won’t be much comfort to those on the losing side).
President elect Donald Trump’s pledge to spend more than $500 billion on rebuilding America’s roads, bridges and airports helped send construction and steel stocks sharply higher following his surprise election win.
Tom Albanese, chief executive officer of Vedanta Resources, also anticipates a boost.
He says (via Blooomberg):
All that we see for President-elect Trump is that he will focus on building, he will focus on the infrastructure.
“That is what the market is reacting to.”
Trump’s victory is also driving up the shares of military and defence companies.
BAE Systems have jumped by 6% this morning, adding to yesterday’s spike following the election result.
It’s a sign that the City expect Trump to deliver on his promise to boost spending on the US military (which he claimed had become depleted on president Obama’s watch). BAE is one of the biggest suppliers to the US department of defence, and makes armoured vehicles, ships, fighter jets and missiles.
And if Trump weakens the ties between Nato members, then European countries may feel compelled to boost their own armies.
Higher inflation expectations drive UK borrowing costs to post-Brexit high