Donald Trump is set to be inaugurated as the 47th president of the United States, with a ceremony scheduled for 5:30 PM Paris time. He plans to deliver a decisive inaugural speech addressing key issues like immigration and energy policies. Financial markets react to his presidency, with the S&P 500 rising nearly 3%. Meanwhile, today is a public holiday in the U.S., and international developments include Hamas releasing Israeli hostages and the World Economic Forum in Davos beginning.
Inauguration and Key Developments
Today marks a significant moment in U.S. history as Donald Trump prepares to take office as the 47th president of the United States. The inauguration ceremony, set to commence at 5:30 PM Paris time, follows a celebratory event held in Washington yesterday. Trump has promised a powerful inaugural address, featuring crucial announcements pertaining to immigration, energy policies, government operations, trade, and other pivotal issues that were central to his campaign. In staying true to his characteristic approach, he stated that he will act swiftly, opting to sign executive orders immediately rather than delaying them, including those rescinding what he referred to as ‘radical and foolish actions from the Biden administration‘.
Financial Market Reactions and Global News
As the countdown to the inauguration continues, financial markets are abuzz with activity. Anticipation is building as traders respond to Trump’s every move, reminiscent of his first term where his unpredictability often led to unexpected market shifts. Last week, market indices reacted positively, buoyed by robust banking results in the U.S. and slightly lower-than-expected inflation rates, alongside a surprising report from Richemont Financial in the luxury sector which primarily benefited the French market. Meanwhile, the S&P 500 experienced a nearly 3% increase, recovering from a challenging previous week. In contrast, Japan faced setbacks as its central bank signals a potential interest rate hike while others are cutting theirs.
In the realm of international news, it’s important to note that today is a public holiday in the United States in honor of Martin Luther King Jr., meaning Wall Street will remain closed. Additionally, Hamas has released three Israeli hostages as part of a truce agreement, and the World Economic Forum in Davos kicks off today with Trump scheduled to deliver a remote speech on Thursday. Investors are also eyeing expectations regarding the Federal Reserve’s future rate decisions, with a varied analysis in the media. This week also brings a slew of corporate earnings reports, featuring major companies like Netflix and Johnson & Johnson.
As we look at the Asia-Pacific markets, South Korea is seeing losses, while Japan, India, Taiwan, and Australia are experiencing gains. Hong Kong’s Hang Seng has risen by 2% following the recent discussions between Trump and Xi Jinping. European market indicators are showing slight bullish trends, with the CAC40 up by 0.17% at 7722 points, while the SMI and Bel20 indices have both dipped slightly.
Today’s Economic Snapshot
No major economic indicators are scheduled for release today. Here’s the latest financial data:
- Euro: 1.0303 USD
- Spread Bund/OAT: 80 points (-1.9%)
- Gold (per ounce): 2703 USD
- Brent Crude: 79.86 USD
- 10-Year U.S. Treasury Yield: 4.63%
- Bitcoin: 102,300 USD
Changes in Recommendations
- AP Moller Maersk: Jefferies has downgraded from buy to hold, reducing the price target from 15,000 DKK to 11,500 DKK.
- Antofagasta: Peel Hunt has upgraded its recommendation from reduce to hold, raising the price target from 1685 GBX to 1735 GBX.
- ArgenX: Deutsche Bank has downgraded from hold to sell, with an increased price target.