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US banking stocks climbed sharply on Wednesday as Donald Trump closed in on the presidency with traders betting on sweeping tax cuts and deregulation.
Frankfurt-listed shares in Goldman Sachs, JPMorgan and Morgan Stanley were up between 8 and 9 per cent in early trading in Europe. American Express climbed 7 per cent.
Shares in banks, technology companies and defence groups are 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.
Shares in electric-car maker Tesla rose more than 12 per cent in the premarket, rallying on signs that prominent Trump backer Elon Musk will benefit from the former president’s likely re-election.
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.
