Stock market today: World shares gain after Trump's victory as focus turns to the Fed

Shares were mostly higher in Europe and Asia on Thursday after U.S. stocks stormed to records as investors wagered on what Donald Trump’s return to the White House will mean for the economy and the world.

Markets also were turning their attention to the Federal Reserve’s decision on interest rates, due later in the day.

In early European trading, Germany's DAX gained 0.8% to 19,196.73. In Paris, the CAC 40 was nearly unchanged, at 7,368.10. Britain's FTSE 100 edged 0.2% higher to 8,182.27.

The futures for the S&P 500 and the Dow Jones Industrial Average were up 0.1%.

In Asia, Japan's Nikkei 225 fell 0.3% to 39,381.41, reflecting worries over the potential for a revival of trade tensions under a Trump administration.

“I think everybody’s going to be worried about Trump's tariffs because that’s one of the things in his playbook. And so we’ll have to see how things develop in the early stages of his presidency this time," said Neil Newman, head of strategy for Astris Advisory Japan.

South Korea's Kospi finished nearly flat, at 2,564.63. Australia's S&P/ASX 200 rose 0.3% to 8,226.30.

Chinese shares rallied after the government reported that exports jumped nearly 13% in October over a year earlier, the fastest pace in more than two years and far outpacing the 2.4% increase in September.

Hong Kong's Hang Seng gained 2% to 20,953.34. The Shanghai Composite index was up 2.6% at 3,470.66.

Trump has promised to slap blanket 60% tariffs on all Chinese imports, raising them still more if Beijing makes a move to invade the self-governing island of Taiwan.

Investors are adding to bets built earlier on what the higher tariffs, lower tax rates and lighter regulation that Trump favors will mean. Higher tariffs on imports from China would add to the burdens Beijing is facing as it struggles to revive slowing growth in the world's second-largest economy.

But the impact may be less drastic than feared, Zichun Huang of Capital Economics said in a report.

“We expect shipments to stay strong in the coming months –- any drag from potential Trump tariffs may not materialize until the second half of next year," Huang said.

Still, higher tariffs on imports from China, Mexico and other countries would raise the risk of trade wars and other disruptions to the global economy.

Trump's win raised expectations that Beijing may ramp up its spending and other stimulus to counter such trends. The Standing Committee of China's legislature is meeting this week and is expected to announce further measures by Friday.

Francis Lun, CEO of Geo Securities, said domestic issues were a greater concern than tariffs. "People want the government to spend some money to boost the economy, instead of looking outward,” he said.

On Wednesday, the U.S. stock market, Elon Musk’s Tesla, banks and bitcoin all stormed higher, as investors made bets on what Donald Trump’s return to the White House will mean for the economy and the world. Among the losers the market sees: the renewable-energy industry and potentially anyone worried about higher inflation.

The S&P 500 rallied 2.5% to 5,929.04 for its best day in nearly two years. The Dow Jones Industrial Average surged 3.6% to 43,729.93, while the Nasdaq composite jumped 3% to 18,983.47. All three indexes topped records they had set in recent weeks.

The impact of Trump's second term will likely depend on whether his fellow Republicans win control of Congress, and that’s not yet clear.

Investors see Trump’s policies potentially leading to stronger economic growth. That helps push prices down and yields up for Treasurys. Tax cuts under Trump could further swell the U.S. government’s deficit, increasing borrowing and forcing yields even higher. The yield on the 10-year Treasury jumped to 4.43% from 4.29% late Tuesday, which is a major move for the bond market. It’s up substantially from August, when it was below 4%.

Investors expect the incoming president's policies, particularly higher tariffs, to fan inflation and add costs to U.S. household bills. Sharp cutbacks in immigration could also leave businesses shorthanded, forcing companies to raise wages for workers faster and putting more upward pressure on prices.

Much of Wall Street’s run to records this year was built on expectations for cuts to interest rates by the Federal Reserve, as inflation has headed back down to its 2% target. Easier interest rates help boost the economy, but they can also give inflation more fuel.

The expectation is that the Fed will cut its main rate Thursday, but traders are already paring back forecasts for how many cuts it might make next year.

In other dealings early Thursday, the U.S. dollar weakened against the Japanese yen, slipping to 154.05 yen from 154.62 yen. The euro rose to $1.0757 from $1.0730.

U.S. benchmark crude oil shed 8 cents to $71.61 per barrel. Brent crude, the international standard, was up 2 cents at $74.94.

The price of bitcoin slipped to $74,789.38 after hitting an all-time high above $76,480 on Wednesday, according to CoinDesk. Trump has pledged to make the country “the crypto capital of the planet” and create a “strategic reserve” of bitcoin.

A man passes a video monitor on the side of the New York Stock Exchange in New York's Financial District on Tuesday, Nov. 5, 2024. (AP Photo/Peter Morgan)

A board above the trading floor of the New York Stock Exchange shows the closing number for the Dow Jones industrial average, Wednesday, Nov. 6, 2024. (AP Photo/Richard Drew)

People pass the New York Stock Exchange in New York's Financial District on Tuesday, Nov. 5, 2024. (AP Photo/Peter Morgan)

A TV camera screen shows the foreign exchange rate between U.S. dollar and South Korean won and the Korean Securities Dealers Automated Quotations (KOSDAQ) at a foreign exchange dealing room in Seoul, South Korea, Thursday, Nov. 7, 2024. (AP Photo/Lee Jin-man)

Members of media stand near the screens showing the Korea Composite Stock Price Index (KOSPI), left, the foreign exchange rate between U.S. dollar and South Korean won and the Korean Securities Dealers Automated Quotations (KOSDAQ) at a foreign exchange dealing room in Seoul, South Korea, Thursday, Nov. 7, 2024. (AP Photo/Lee Jin-man)

A currency trader talks on the phone at a foreign exchange dealing room in Seoul, South Korea, Thursday, Nov. 7, 2024. (AP Photo/Lee Jin-man)

A tv cameraman films the screens showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at a foreign exchange dealing room in Seoul, South Korea, Thursday, Nov. 7, 2024. (AP Photo/Lee Jin-man)

A currency trader walks by the screens showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at a foreign exchange dealing room in Seoul, South Korea, Thursday, Nov. 7, 2024. (AP Photo/Lee Jin-man)

A currency trader walks by the screens showing the foreign exchange rate between U.S. dollar and South Korean won at a foreign exchange dealing room in Seoul, South Korea, Thursday, Nov. 7, 2024. (AP Photo/Lee Jin-man)

Several large airstrikes hit Beirut’s southern suburbs early Thursday, including one on a site adjacent to Lebanon’s only international airport. The Israeli military had issued an evacuation notice for the site, saying there were Hezbollah facilities there, without giving more details.

Also Thursday, the Israeli military announced it expanded its month-old ground operation in northern Gaza to include part of Beit Lahiya, a town that has been heavily bombed since the earliest days of the war, where Israel says Hamas militants have regrouped.

Hezbollah leader Naim Kassem said in a speech aired Wednesday that the Lebanese militant group is open for cease-fire negotiations only once “the enemy stops its aggression.” His speech marked the 40-day mourning period since former Hezbollah chief Hassan Nasrallah was assassinated in Beirut.

Hezbollah began firing into Israel on Oct. 8, 2023, in solidarity with the Hamas militant group in the Gaza Strip. Since the conflict erupted, more than 3,000 people have been killed and some 13,600 wounded in Lebanon, the Health Ministry reported.

The Israel-Hamas war began after Palestinian militants stormed into Israel on Oct. 7, 2023, killing some 1,200 people — mostly civilians — and abducting 250 others. Israel's military response in Gaza has killed more than 43,000 people, Palestinian health officials say. They do not distinguish between civilians and combatants, but say more than half of those killed were women and children.

Here’s the latest:

JERUSALEM — Israel says it has reached an agreement to purchase 25 advanced F-15 fighter jets from U.S. aerospace giant Boeing for $5.2 billion.

The Defense Ministry said the agreement, concluded Wednesday, was part of a broader aid package approved by the U.S. government earlier this year. Deliveries will begin in 2031, and there’s an option for the purchase of an additional 25 aircraft.

The United States has provided crucial military support to Israel as it has battled Hamas in Gaza, Hezbollah in Lebanon and traded fire with Iran.

The Biden administration recently warned Israel that if it did not facilitate the delivery of more aid to Gaza, U.S. laws may force the administration to curb some of its military support.

The State Department said this week that Israel had yet to sufficiently improve aid deliveries ahead of a mid-November deadline.

President-elect Donald Trump has vowed to end the wars in the Middle East without saying how he plans to do it. He was a staunch supporter of Israel during his previous term but also cultivated close ties with Arab Gulf leaders.

RAMALLAH, West Bank — The Al Jazeera news network says the Israeli military has extended the order shutting down its bureau in the occupied West Bank.

Walid al-Omari, the network’s bureau chief, said Israeli troops raided the office in Ramallah again early Thursday and posted a notice extending the closure for an additional 45 days.

Israel had previously raided the office and shut it down on Sept. 22. Earlier this year, authorities took the rare step of barring the Qatar-based network from operating in Israel.

Israel accuses Al Jazeera of serving as a mouthpiece for Hamas, an allegation denied by the network. Last month, Israel accused six Al Jazeera journalists in Gaza of being Palestinian militants, which the network also denied.

Al-Jazeera has provided near 24-hour coverage from inside Gaza since the start of the Israel-Hamas war, with a heavy focus on the war’s toll among Palestinian civilians. Several of its correspondents have been killed or wounded by Israeli forces.

It also routinely airs unedited Hamas videos showing attacks on Israeli forces and hostages speaking under duress.

Israel’s parliament passed a law early Thursday that would allow it to deport family members of Palestinian attackers, including the country’s own citizens, to the war-ravaged Gaza Strip or other locations.

The law, which was championed by members of Prime Minister Benjamin Netanyahu’s Likud party and his far-right allies, passed with a 61-41 vote but is likely to be challenged in court.

It would apply to Palestinian citizens of Israel and residents of annexed east Jerusalem who knew about their family members’ attacks beforehand or who “express support or identification with the act of terrorism.”

Read the full story here.

JERUSALEM — The Israeli military has expanded its month-old ground operation in northern Gaza to a town that has been heavily bombed since the earliest days of the war.

The military said in a statement Thursday that “troops started to operate” in the area of Beit Lahiya after intelligence indicated the presence of militants there. Hamas has repeatedly regrouped in areas where the military already conducted major operations.

The town in the northwestern corner of Gaza was among the first targets of the ground invasion launched over a year ago, after Hamas’ attack into southern Israel. The northern third of the territory has been encircled by Israeli forces since then.

Israel launched another major offensive in nearby Jabaliya, a decades-old urban refugee camp, in early October. It has sharply restricted the amount of aid entering northern Gaza and ordered a full evacuation. Tens of thousands have fled to nearby Gaza City in the latest mass displacement of the war.

BEIRUT — Several large airstrikes hit Beirut’s southern suburbs early Thursday, including one on a site adjacent to Lebanon’s only international airport.

The Israeli military had earlier issued an evacuation notice for the site, saying that there were Hezbollah facilities there, without giving more details.

There were no immediate reports of casualties.

Beirut’s airport has not been directly targeted in the war between Israel and Hezbollah, and national air carrier Middle East Airlines has continued to operate commercial flights.

For more Middle East news: https://apnews.com/hub/middle-east

Smoke and fire rise from Israeli airstrikes in Dahiyeh, Beirut, Lebanon, Lebanon, Thursday, Nov. 7, 2024. (AP Photo/Hassan Ammar)

Smoke rises from an Israeli airstrike on Dahiyeh, in the southern suburb of Beirut, Lebanon, Wednesday, Nov. 6, 2024. (AP Photo/Bilal Hussein)

Israelis light a bonfire during a protest against Prime Minister Benjamin Netanyahu near his residence in Jerusalem, a day after he dismissed his defence minister Yoav Gallant, Wednesday, Nov. 6, 2024. (AP Photo/Ohad Zwigenberg)

Smoke and fire rise from Israeli airstrikes in Dahiyeh, Beirut, Lebanon, Lebanon, Thursday, Nov. 7, 2024. (AP Photo/Hassan Ammar)