European Stocks Rise, Dollar Falls as Investors Eye Trump Inauguration

European stock markets opened slightly higher alongside U.S. equity futures, while the U.S. dollar weakened ahead of Donald Trump's inauguration. Bitcoin soared to a record high.

Trump's Policy Agenda

Trump is set to sign a series of executive orders on his first day in office, addressing immigration, tariffs, and energy. These moves are expected to be favorable for businesses but also introduce uncertainty.

Market Impacts

* Asian stocks surged on Monday following Trump's positive phone call with Chinese President Xi Jinping.
* Bitcoin jumped 5.5% after Trump and his wife unveiled their own memecoins.
* The Stoxx Europe 600 index gained 0.1%, led by technology stocks.
* Wall Street futures saw modest gains.
* The U.S. dollar slipped for the first time in three days but remained near its 13-month high.

Energy Sector

* Trump plans to invoke emergency powers to promote domestic energy production and roll back climate change measures implemented by President Joe Biden.
* Oil prices held steady, while energy stocks declined in Europe.

Federal Reserve Outlook

* Analysts predict the Federal Reserve will become less dovish due to Trump's pro-growth and protectionist policies.
* Some expect 10-year Treasury yields to rise to 6% this year.

Asia-U.S. Relations

* The positive tone in Asia stems from Trump and Xi's discussion on trade and other issues.
* TikTok resumed service in the U.S. after Trump paused enforcement of a law requiring it to be sold.

Key Events This Week

* World Economic Forum in Davos begins on Monday.
* Trump's inauguration on Monday.
* Bank of Japan policy decision on Friday.

Market Highlights

Stocks:

* Stoxx Europe 600: +0.1%
* S&P 500 futures: Little changed
* Nasdaq 100 futures: +0.1%
* Dow Jones futures: Little changed

Currencies:

* Bloomberg Dollar Spot Index: -0.2%
* Euro: +0.4% to $1.0310
* Japanese yen: Little changed at 156.16 per dollar
* Offshore yuan: +0.2% to 7.3273 per dollar
* British pound: +0.3% to $1.2201

Cryptocurrencies:

* Bitcoin: +4.3% to $108,031.14
* Ether: +5.3% to $3,402.2

Bonds:

* 10-year Treasury yield: Little changed at 4.63%
* German 10-year yield: Little changed at 2.53%
* British 10-year yield: Little changed at 4.66%