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Dollar gains most in eight years

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Euro set for biggest drop since 2016

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Tariff-sensitive assets plunge

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Mexican peso drops

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Bitcoin roars to record

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US stock futures surge

(Updates with comments in paragraphs 15-16, adds graphics,

refreshes prices at 1315 GMT)

By Amanda Cooper

LONDON, Nov 6 (Reuters) - Donald Trump's rapid

confirmation as the next U.S. president unleashed the biggest

one-day rally in the dollar in eight years and lifted stocks, as

investors bet tariffs on imports and tax cuts could benefit U.S.

business.

U.S. stock futures rallied by almost the most in a year,

while the dollar was set for its largest one-day jump since

2016. Bitcoin hit record highs and Treasuries were battered.

Trump's pledges to raise tariffs, cut taxes and slash

regulations encouraged investors to dive into a range of assets

that looked likely to benefit from such policies.

Markets that could suffer under tougher tariffs, including

those in some of the United States' major trading partners, bore

the brunt of the sell-off, pushing the Mexican peso to

its lowest in over two years, while the euro was set

for its largest one-day drop since the Brexit vote in 2016.

Adding to the confidence in markets was Republicans winning

control of the U.S. Senate, ensuring Trump's party will control

at least one chamber of Congress next year, part of a potential

so-called "Red sweep".

"It's extremely early days to be drawing conclusions about

what a Trump presidency and potential clean sweep might mean for

the U.S. and global economy and financial markets. Certainly,

higher tariffs would involve greater inflation and less world

trade growth," said Philip Shaw, chief economist at Investec.

"With stocks, one of the primary drivers is Trump's promise

to reduce corporate taxes for companies that make goods in

America. And obviously, we've seen a big increase in U.S. stock

futures and that's carried through to European markets as well."

European stocks rallied, led by defence shares and banks,

while renewable energy shares dropped.

The election could have far-reaching implications for tax

and trade policy, as well as U.S. institutions. The outcome

affects assets globally and could determine the outlook for U.S.

debt, the longer-term strength of the dollar and a host of

industries that make up the backbone of corporate America.

INTEREST RATES SEEN HIGHER

"The consequence is a higher path of rates," said Nick

Ferres, chief investment officer at Vantage Point Asset

Management in Singapore. He was buying bank shares in

anticipation that higher yields and stronger growth would

benefit their earnings.

Investors sold U.S. Treasuries, partly on the expectation

that higher tariffs would inevitably filter through to consumer

prices, but also because Trump's promises on spending risk

worsening the government's finances.

"Next year will be a year in which there'll be a lot of

discussion in terms of fiscal issues in the United States,"

Moelis ( MC ) Vice Chairman and Managing Director Eric Cantor told a

conference in Abu Dhabi on Wednesday as the election results

were trickling in.

Meanwhile, shares in Trump Media and Technology Group ( DJT )

surged in premarket trading, while those in Tesla

, headed by Trump supporter Elon Musk, jumped nearly

13%.

Bitcoin surged to a record high, betting on a softer line on

cryptocurrency regulation.

"With Trump's victory, you'll get much stronger fiscal

policies compared to what might have been under a Democratic

administration. This will have repercussions for inflation, and

you can see that already with this morning's rise in Treasury

yields," Andrea Scauri, a Swiss-based senior portfolio manager

at Lemanik, said.

"So, who benefits from all of this? I think old-economy

sectors, like oil, drilling, mechanical, and heavy industry,

will benefit. And probably also tech, as the American consumers

will have more money in their pockets, they might spend it on

new phones, TVs, or invest in the stock market."

The results so far suggested markets had gained clarity

faster than in 2020, when Joe Biden was announced the victor

some four days after election night.

"That's what markets have been most worried about, that

there would be a long, drawn-out fight over who won," said Jamie

Cox, managing partner at Harris Financial Group.

(Additional reporting by Lewis Krauskopf, Suzanne McGee,

Michelle Conlin, Nupur Anand, Chibuike Oguh, Noel Randwich,

Saqib Ahmed, Saeed Azhar, Caroline Valetkevitch, Tom Westbrook,

Kevin Buckland, Megan Davies, Douglas Gillison, Carolina Mandl,

Lananh Nguyen, Danilo Masoni, Sinead Cruise and Alex Cornwell;

Writing by Michelle Price and Amanda Cooper; Graphics by Pasit

Kongkunakornkul, Vineet Sachdev and Sumanta Sen; Editing by

Paritosh Bansal, Sam Holmes, Peter Graff and Sharon Singleton)