Markets on High Alert as Trump Takes Office
As the world prepares for Donald Trump’s swearing-in as the 47th president, global markets are experiencing a surge in activity. Bitcoin has reached a new all-time high, breaching the $109,000 mark, while stock futures are up 0.5% ahead of the inauguration.
A New Era for Cryptocurrency?
Trump’s stance as a cryptocurrency champion has led to a significant increase in bitcoin’s value, with the digital currency surging over 50% since his election. The president-elect and his wife Melania have even launched their own meme coins, $TRUMP and $MELANIA, although these have been met with criticism due to potential conflicts of interest.
Dollar Weakens, Currencies Strengthen
The US dollar has extended its losses, with the WSJ Dollar Index sliding 0.8% to a near-two-week low. Meanwhile, currencies of economies expected to be hit hard by tariffs, such as the British pound, euro, Mexican peso, and Canadian dollar, have all gained over 1%.
Executive Orders to Impact Markets
Investors are bracing for a flurry of executive orders from Trump, which could have significant implications for markets. According to Susannah Streeter, head of money and markets at Hargreaves Lansdown, “Once those executive orders start coming through and the implications of those are analyzed, that’s where you’ll see sway on markets.”
Global Markets React
Asian stock indexes have risen, with Hong Kong’s Hang Seng Index adding 1.7% and the Shanghai Composite ticking up. In Europe, the broad Stoxx Europe 600 has edged higher. However, Brent crude futures have fallen over 1% to trade below $80 a barrel.
Earnings and Interest-Rate Decisions Ahead
This week will see a slew of earnings reports from companies such as Netflix, United Airlines, Procter & Gamble, and American Express. Additionally, interest-rate decisions are due from central banks in countries including Japan, Norway, and Turkey.
A Turbulent Road Ahead?
Many investors are preparing for potential market turbulence, fearing that Trump’s promised policies, including hefty tariffs, could reaccelerate inflation and have far-reaching consequences for markets and Federal Reserve policy. As the world waits with bated breath for Trump’s next move, one thing is certain – the coming days will be filled with market volatility.
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