Trump’s Pre-Inauguration Comments Send Ripples Through Global Markets
As the world prepares for Donald Trump’s inauguration, his recent comments have already started making waves in the stock market. From defense to renewable energy, and even a surprise interest in Greenland, Trump’s statements are causing significant fluctuations in share prices.
Wind Energy Takes a Hit
Shares in companies exposed to wind energy, such as Orsted A/S, Siemens Energy AG, and Vestas Wind Systems A/S, plummeted over 6% on Wednesday after Trump expressed his intention to halt wind farm constructions during his second term. This sudden downturn has left investors reeling, wondering what other surprises Trump’s presidency may hold.
Defense Stocks Get a Boost
On the other hand, Trump’s call for NATO members to increase their defense spending to 5% of their economic output has given a significant boost to makers of tanks and missiles. Norwegian missile maker Kongsberg Gruppen ASA saw its shares surge 4.1%, while Sweden’s Saab AB and Germany’s Rheinmetall AG rose 5.4% and 5.3%, respectively.
Tariffs and Trade Wars
A CNN report suggesting that Trump may declare a national economic emergency to impose universal tariffs has sent shockwaves through the automotive and luxury goods sectors. Stellantis NV, the maker of Fiat and Alfa Romeo cars, fell 3.1%, while Louis Vuitton owner LVMH slid 2.2%. European stocks with high exposure to tariffs have been underperforming the market since last year, and Trump’s comments have only added to the uncertainty.
Global Impact
Trump’s comments have had far-reaching consequences, with stocks in Australia also feeling the effects. Energy Transition Minerals, a small-cap miner with a rare earths project in Greenland, saw its shares skyrocket 52% after Trump reiterated his interest in acquiring the island. As investors navigate this new landscape, one thing is clear: Trump’s presidency will be marked by volatility and unpredictability.
Uncertainty Reigns
“At this stage, his statements raise questions and create uncertainty about the trade and foreign policy he intends to implement,” noted CIC Market Solutions economist Adrien Regnier-Laurent. As the world waits with bated breath for Trump’s inauguration, one thing is certain: his presidency will be a wild ride for investors.
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