Global Markets Take a Cautious Stance Ahead of Trump Presidency
As the world returns from the New Year holidays, European stocks have taken a slight dip, with investors keeping a close eye on economic data and potential policy changes under the incoming Trump administration. The pan-European STOXX 600 index slipped 0.1% by 0815 GMT, but is still on track for a 0.7% weekly gain, despite light trading activity.
Swiss Stocks Buck the Trend
In contrast, Swiss stocks made a strong start to the year, rising 0.5% in their first trading session of 2025. This positive performance was not mirrored in other major European markets, with the German DAX dipping 0.2% and France’s CAC 40 sliding 0.5%.
China Concerns Weigh on Markets
China-exposed sectors, such as miners and automakers, came under pressure despite a Beijing official’s announcement that China would significantly increase funding from ultra-long treasury bonds in 2025 to boost business investment and consumer initiatives. Investors remain worried about China’s economic outlook and the looming threat of a trade war with the US ahead of Trump’s inauguration on January 20.
Tullow Oil Sees Significant Gains
Among individual stocks, Tullow Oil surged 12.5% after the International Chamber of Commerce ruled in its favor, exempting it from paying $320 million in taxes on its Ghana operations. This welcome news provided a much-needed boost to the West Africa-based company’s shares.
Investors Remain Cautious
As the global economy navigates the uncertainty of the Trump presidency, investors are taking a cautious approach, seeking clues from economic data and policy announcements to guide their investment decisions. With the inauguration just around the corner, all eyes will be on the new administration’s moves and their potential impact on global markets.
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