Markets Poised for Gains as Trump Takes Office
As the second administration of U.S. President Donald Trump begins, markets are expected to open with a boost on Tuesday. Futures for the S&P 500 and Dow Jones Industrial Average rose by approximately 0.4% each before the bell, while Nasdaq futures saw a 0.5% increase. The optimism is attributed to the inauguration, which some analysts believe will inject positivity into global markets.
Trade Policy Uncertainty Eases
Trump’s “America First Trade Policy” memo, released after taking office, indicates that no immediate action will be taken on raising tariffs. This move has alleviated concerns about potential double-digit tariffs on all imports. However, the plan does call for a broad reassessment and overhaul of U.S. trade policy, which may still impact markets in the long run.
Walgreens Shares Plummet Amid Opioid Allegations
In early equities trading, Walgreen’s shares took a hit, tumbling over 7% after the U.S. Justice Department accused the drug store chain of filling millions of prescriptions without a legitimate purpose, including for dangerous amounts of opioids. The company has denied the allegations, stating that it stands behind its pharmacists.
3M Soars on Strong Sales Guidance
On the other hand, 3M climbed close to 4% after the industrial and consumer products maker beat Wall Street’s fourth-quarter sales and profit targets and issued strong sales guidance for the coming year.
Global Markets React
In Europe, France’s CAC 40 gained 0.1%, while Germany’s DAX inched down 0.1% and Britain’s FTSE 100 remained essentially unchanged. Worries about the effects of Trump’s policies on China have eased somewhat, as both sides have pledged to work to improve relations. Hong Kong’s Hang Seng index rose 0.9%, lifted by embattled Chinese property developer Country Garden, whose shares jumped 17.5% after it got a reprieve on its deadline for working out an agreement with its creditors.
Asian Markets See Mixed Results
Tokyo’s Nikkei 225 index gained 0.3%, while Australia’s S&P/ASX 200 gained 0.7%. South Korea’s Kospi slipped less than 0.1%. Shares in Fuji Media Holdings, of which major Japanese broadcaster Fuji TV is a part, recouped earlier losses, finishing 2.1% higher.
Commodities and Currencies
Benchmark U.S. crude declined $1.88 to $75.51 a barrel, while Brent crude lost $1.30 to $78.85 a barrel. The dollar rose to 155.82 Japanese yen, and the euro cost $1.0355, down from $1.0416. Bitcoin is down, but trading near all-time highs around $104,425, while the new Trump cryptocurrency tumbled 22%.
Leave a Reply