Global markets experienced extreme volatility following Donald Trump’s inauguration, with sharp swings across stocks, currencies, commodities, and cryptocurrencies. The turbulence was primarily driven by investor reactions to Trump’s proposed tariff policies. Early signs of potential exemptions on tariffs for goods from China, Canada, and Mexico led to market gains on Monday, announcement of a 25% tariff on imports from Canada and Mexico on Tuesday caused a reversal, pushing the US dollar higher and unsettling markets.
Investor sentiment remained highly sensitive to Trump’s trade policy shifts, leading to increased demand for safe-haven assets like gold and the Japanese yen. While gold surged to its highest level since the election, Bitcoin hit a record high of over $109,000 before retreating due to uncertainty around crypto regulations under the new administration. Despite these fluctuations, the dollar gained strength as a haven asset, and the outlook for Bitcoin remained cautious until clearer regulatory policies are introduced.
Oil prices also faced downward pressure as Trump declared his intention to boost US production and reverse climate-focused policies. Although oil prices saw a slight rebound in the Asian session, the market’s future remains uncertain, particularly in light of Trump’s approach to the ongoing war in Ukraine. His potential actions regarding sanctions on Russia could significantly impact crude prices in the coming months.
Source: euro news