CashNews.co
Stay informed with free updates
Simply sign up to the Equities myFT Digest — delivered directly to your inbox.
Shares in Tesla and US bank stocks rose sharply on Wednesday while European renewable companies slumped, as investors bet on a sizeable impact from Donald Trump’s likely election as US president.
Tesla, whose chief executive Elon Musk became one of Trump’s most vociferous backers, rose 12 per cent in pre-market trading.
Frankfurt-listed shares in Goldman Sachs, JPMorgan and Morgan Stanley were up between 8 and 9 per cent in early trading in Europe, on the expectation that Trump would deliver sweeping tax cuts and deregulation. American Express climbed 7 per cent.
Banks and defence groups are among the companies expected to benefit if the Republicans take control of the White House and the two houses of Congress in a so-called “red sweep” and are able to push through a radical reform agenda.
Renewable companies in Europe slumped, meanwhile, amid fears that Trump could bring the sector to a standstill. Danish wind turbine manufacturer Ørsted, the world’s largest, was down 14 per cent in early trading. Danish rival Vestas was down 10 per cent.
Joe Biden’s administration turbocharged offshore wind deployment and set a target of 30GW of offshore wind by 2030, but Trump has vowed to stop projects on “day one” of the new administration.
Musk backed Trump in the contest, to avoid “strangulation by overregulation”.
Trump, speaking as he declared victory in Florida, told supporters that “a star is born . . . Elon” and delivered an at times unclear set of remarks on the visionary strength of Musk’s SpaceX project.