Donald Trump’s unlikely rise to power is providing a shot in the arm for global financial markets, with stocks and commodities rallying on optimism that his fiscal-stimulus plans will boost the global economy.

European equities joined a global rally as they headed for their biggest four-day jump since July. Banks surged on prospects of lighter regulation for their U.S. operations and higher lending rates, and miners gained on increased metals prices. Copper headed for its highest price in almost 16 months on Trump’s intention to expand infrastructure spending. Currencies of most commodity-producing nations advanced, while Bloomberg’s dollar index reversed losses. Government bonds in Europe and Asia slid on the possibility of higher inflation, while corporate-debt sales resumed in Europe as markets stabilized.

Market Moves Since Trump Was Elected
Market Moves Since Trump Was Elected

There’s been a U-turn in global markets since the shock win for Trump triggered a knee-jerk selloff in equities and rush into haven assets. European shares Wednesday staged their biggest turnaround since March as investors took comfort in his acceptance speech. They are starting to look beyond Trump’s campaign rhetoric, focusing instead on his promises to cut taxes and at least double Hillary Clinton’s estimated $275 billion, five-year plan for roads, airports and bridges.

“It’s a relief rally of the certainty of the outcome of the election and after the conciliatory tone that Trump took,” said Nick Skiming, a fund manager at Jersey, Channel Islands-based Ashburton Ltd. His firm oversees $10 billion. “We know from Trump’s policies that he wants to reduce taxes and embark on fiscal spending and if he gets those approved, that will be expansionary for the U.S. economy in the short term.”

Stocks

The Stoxx Europe 600 Index gained 0.3 percent as of 1:44 p.m. London time, paring an increase of as much as 1.3 percent. Lenders reached their highest levels since March. UBS Group AG soared 8.2 percent, set for its best day since 2011. Among Trump’s policies were a pledge to repeal the Dodd-Frank Act’s strict capital requirements on banks and a proposed temporary moratorium on new financial regulations.

Gains in commodities helped send a gauge of miners to its highest since June 2015. French media company Vivendi SA jumped 9.5 percent, and Germany’s Siemens AG rose 4.4 percent after they posted profit that beat projections.

S&P 500 Index futures climbed 0.5 percent, signaling U.S. equities will extend their advance into a fourth day. Contracts on the Dow Jones Industrial Average rose 0.5 percent, indicating the index will open at a record after it closed just 0.3 percent shy of a high on Wednesday.

Billionaire Carl Icahn said he left President-elect Trump’s victory party to bet about $1 billion on U.S. equities. The investor said that the economy still faces challenges but Trump will be “a positive, not a negative” for the country.

Among companies reporting earnings Thursday, Ralph Lauren Corp. rose 1.8 percent in premarket New York trading after posting second-quarter profit that exceeded analysts’ estimates. Macy’s Inc. advanced 3.4 percent after hiring Brookfield Asset Management to squeeze more money out of its real estate holdings, following another quarter of declining sales.

The MSCI Asia Pacific Index climbed 2.4 percent, the most since Sept. 21. Japan’s Topix index jumped 5.8 percent, after sinking 4.6 percent in the last session, and Australia’s benchmark rallied by the most in five years.

In Hong Kong, Jiangxi Copper Co., China’s second-largest producer by output, rose 14 percent. Russian aluminum maker United Co. Rusal Plc jumped by the most on record.

Saudi Arabian stocks extended their winning streak to six days, entering a bull market as investors bet the government’s belated payments to contractors will help spur more gains.

Commodities

Industrial metals rose as Goldman Sachs Group Inc. said Trump’s promise to revive American infrastructure means commodities used to build everything from airports to bridges will benefit under his presidency.

Copper rose 3 percent to $5,574 a metric ton, its highest price since July 2015, while zinc advanced 1.8 percent and nickel added 0.7 percent.

Gold advanced 0.1 percent to $1,279.55 an ounce as traders shifted their focus back to whether the Federal Reserve will raise interest rates for the first time this year when policy makers meet next month. Bullion had a roller-coaster ride on Wednesday that featured the biggest gain since Britain’s Brexit vote, before it ended up just 0.2 percent. Silver gained 0.7 percent on Thursday.

Oil fell after three days of gains. The International Energy Agency said prices may retreat amid “relentless global supply growth” unless the Organization of Petroleum Exporting Countries enacts significant output cuts. West Texas Intermediate dropped 1 percent to $44.84 a barrel, while Brent lost 0.4 percent to $46.16.

Bonds

European debt fell after about $337 billion was wiped off bond markets on Wednesday as Trump’s election sparked concern that his plan to boost economic growth will lead to a surge in inflation. The yield on German 10-year bonds climbed nine basis points to to 0.29 percent, while that on similar-maturity U.K. gilts added eight basis points to 1.34 percent.

Ten-year U.S. Treasury yields rose four basis points to 2.09 percent. The U.S. is selling $15 billion of 30-year Treasuries at an auction on Thursday. Bonds of that maturity led Wednesday’s selloff, with yields climbing 23 basis points.

“Trumpeconomics implies a likely faster pace of Fed rate hikes next year,” said Robert Rennie, head of financial markets strategy at Westpac Banking Corp. in Sydney. “It is clear that this wave of populist vote has reflected, in part, dislike of tight fiscal, easy monetary policy. If we are now seeing a shift in the U.S., then that means markets will have to reprice this.”

Odds for a Fed interest-rate hike in December climbed to 88 percent, based on U.S. overnight indexed swaps that trade 24 hours a day, after plunging below 50 percent while the outcome of the election unfolded. San Francisco Fed President John Williams said Wednesday that the argument for gradual interest-rate increases “still makes sense to me.”

Australia’s government bonds joined the global selloff, lifting the 10-year yield by 28 basis points to 2.50 percent.

U.S. agricultural giant Bunge Ltd., gas pipeline operator Nederlandse Gasunie NV and Russian gas exporter Gazprom PJSC all offered bonds in euros, according to separate people familiar with the sales, who asked not to be identified as they aren’t authorized to discuss the plans publicly. Issuance of corporate bonds in the single currency almost ground to a halt in the days leading up to the U.S. election.The cost of insuring financial companies’ senior debt against default fell by the most in three months. The Markit iTraxx Europe Senior Financial Index of credit-default swaps dropped three basis points to 93 basis points.

Currencies

Currencies of commodity-producing nations pared gains, with Norway’s krone appreciating 0.2 percent, while Australia’s dollar was little changed. South Africa’s rand slumped 3 percent, leading global currency declines against the dollar.

The Bloomberg Dollar Spot Index reversed losses, advancing 0.5 percent to its highest level since March, after rallying 1.4 percent on Wednesday.

“A Trump presidency is dollar bullish because Trump’s economic policies are inflationary and will force the Fed to raise the Funds rate at a faster pace than otherwise,” said Elias Haddad, a senior currency strategist at Commonwealth Bank of Australia.

Mexico’s peso was down 1.9 percent after sinking 7.7 percent on Wednesday. Trump has pledged to renegotiate the North American Free Trade Agreement and curb illegal immigration by building a wall along the U.S.’s southern border.

The yuan slipped to a six-year low amid concern Chinese exports will also suffer. Trump has called China a “grand master” at currency manipulation and has threatened tariffs of up to 45 percent on imports from the Asian nation, a step that Commonwealth Bank of Australia estimated would cut Chinese shipments to the the U.S. by 25 percent in the first year.

(An earlier version of this story corrected the spelling of Hillary Clinton’s name in the third paragraph.)

Read this article in its original format at Bloomberg.com

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