Global equity markets continued their post-election rally Thursday as investors placed ever-increasing bets that the U.S. President elect will attempt to enact sweeping changes to America's economic and corporate landscape.
The reverberations of the so-called "Trump Bump" for stocks has echoed around the world, with stocks in Japan surging the most in nine months and European equities extending advances amid a portfolio shuffle that has potential winners from a Donald Trump administration leading gainers around the continent.
Trump's corporate and personal tax overhaul alone could be worth $9.5 trillion over the next ten years, according to Ian Shepherdson of Pantheon Macroeconomics, a stimulus he has described as the biggest fiscal peacetime expansion in memory.
References to infrastructure spending in his Manhattan victory speech and subsequent promises to create "shovel ready" jobs has the potential to add trillions more to U.S. economic growth.
Below is a snap-shot of 'Euro Trump Stocks' and sectors complied by TheStreet which are finding favor from global investors in the immediate aftermath of Tuesday's election.
The largest European lenders, and specifically those with significant U.S. exposure, are helping lead equity benchmarks as the Stoxx 600 Bank Index rises to a 7.5 month high of 159.21.
Deutsche Bank (DB) is one of the top advances, with shares up 6% to €14.15 Britain's Barclays Plc (BAR) is up 5.66% to 203.6 pence each, the highest since January 13, and Credit Suisse (CS) added 7.27% to trade at Sfr13.76.
Trump's election references to "getting rid" of Dodd-Frank reforms in order to get banks lending suggest his administration will at least slow the pace of new Wall Street regulation and give the industry its first chance to expand in the post-crisis era.
Big European insurance groups are seeing significant share-price gains Thursday as investors and analysts look to changes in accounting rules and broader industry regulation in the wake of a Trump win and Republican control of Congress.
Aegon NV (AEG) , the Dutch insurance giant, was one of the day's biggest movers as shares rose more than 12% to a five-month high of €4.62 each. The U.S.-focused group said Q3 earnings suffered from higher life insurance claims and reported a 7% decline in underlying profit but investors still bid the shares up in the Trump rally. U.K.-based Prudential Plc (PUK) , which generates around 40% of its group earnings from the U.S., gained 7.1% in London.
AEROSPACE & DEFENCE
Trump's call for significant increases in troops, aircraft and military technology spending has investors betting on bigger-than-expected increases in the Pentagon's budget under a Republican-controlled congress. His anti-NATO rhetoric may also ignite spending increases from European allies, analysts have said.
Big European movers Thursday include BAE Systems (BAESY) the U.K.'s biggest defence firm which generates 40% of its revenues from the U.S., rose 7% to an all-time high of 625 pence each Thursday. France's Thales SA (THLEY) rose 2.9% and Italy's Leonardo Finmeccanica SpA (FINMY) added 3.3%.
MINERS & BASIC MATERIALS
Antofagasta (ANFGY) shares rose more than 12.35% to a 52-week high of 719.5 pence each in concert with a surge in LME copper prices.
The London-listed Chilean miner cautioned only two weeks ago that its copper production would be at the lower end of guidance this year, and that next year's would fall.
However, global copper prices rose sharply in London, rising to a 16-month high of $5,500 per ton, extending its two-day advance to 7%, as traders bet on steep infrastructure spending gains from a Trump Presidency, helping take the shares to the top FTSE 100 leaderboard.
Anglo American Plc shares were up 5.34% in London to a 52-week high of 1,257.5 pence each while Germany's HeidelbergCement AG (HDELY) rose 2.06% to an all-time high of €94.42 in Frankfurt.