Donald Trump is now officially the US President again and already markets are making moves based on these prima facie early hours.
Here are the key observations in this early stage:
- The US dollar has declined as Trump held off on massive tariffs.
- $TRUMP fell further after crypto absent from speeches.
- Bitcoin also fell (+7.6% MoM).
- US market futures are flattish red as at 12.15AM AEDT.
- Brent Crude gained to hover at US$80.20/bbl (+10% MoM).
- Price of gold flattish red at US$2,709.oz.
- Copper flattish red at US$4.27/lb (+6% MoM).
Interesting to see is U.S. market futures have dipped into the red with the S&P500 down a quarter of a percent pre-market.
That could be because, like crypto, the stock market has also been absent from this early-stage revealing of policy. One can’t help but think it mightn’t last.
The US dollar dipped as Trump went soft on his promise to hit China (and Canada and Mexico) with massive tariffs, suggesting he might do so on February 1.
Energy stocks are likely to be a fair bet under Trump 2.0, but the biotech and pharmaceutical sectors will be mixed.
On Tuesday morning, Trump signed an order withdrawing the USA from the World Health Organisation (WHO). That’s a symbolic move but might make shareholders in pharma companies with a DEI agenda nervous.
Elsewhere, Robert F. Kennedy presumably haunts the halls, still in line to become U.S. ‘health czar.’ We don’t know yet where RFK really is. He was also suspiciously absent from the inauguration.
Note: The NYSE will open in around 13 hours, so things may still change.
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