US Equity Futures Rise, Dollar Extends Losses on Trump's Trade Tariff Delay

US equity futures gained traction, while the US dollar (DX=F) continued to decline, following reports by the Wall Street Journal that President-elect Donald Trump plans to postpone imposing new tariffs upon taking office.

Key Highlights:

* Trump intends to issue a comprehensive memorandum directing federal agencies to analyze trade policies and assess US trade partnerships.
* The memorandum avoids implementing new tariffs on his first day in office, contrary to expectations from various trading partners.
* The US dollar index (DX=F) dropped by 0.9%, extending its decline from a 13-month high reached earlier in January.
* Contracts on the S&P 500 (ES=F) and Nasdaq 100 (NQ=F) rose by 0.4% on Monday, with Wall Street closed for a holiday.
* The memorandum identifies China, Canada, and Mexico for scrutiny, directing agencies to assess Beijing's compliance with its 2020 trade agreement with the US.
* Relief among investors was expressed, as they anticipated a flurry of executive orders on Trump's first day, including immigration, tariffs, and energy policies.
* Trump's plan to utilize emergency powers for boosting domestic energy production, while moving away from renewable sources, led to declines in Siemens Energy AG, Enel SpA, and Vestas Wind Systems A/S.
* Crude oil prices fell, while Bitcoin (BTC-USD) surged by 5.5% following the unveiling of the president-elect's memecoins over the weekend.
* Trump's "very good" conversation with Chinese President Xi Jinping lifted Asian stocks on Monday.
* The potential for increased fiscal stimulus from Trump, ranging from tax cuts to higher tariffs, could maintain the dollar's strength and elevate Treasury yields.
* Nomura Holdings Inc. and T. Rowe Price predict a rise in 10-year Treasury yields to 6% this year, while some bond traders anticipate a rate increase by the Federal Reserve, contrasting with the prevailing view of rate cuts.

Key Market Moves:

Stocks
* S&P 500 futures: +0.4%
* Nasdaq 100 futures: +0.4%
* Dow Jones Industrial Average futures: +0.4%
* Stoxx Europe 600: +0.2%
* MSCI World Index: +0.3%

Currencies
* Bloomberg Dollar Spot Index: -0.9%
* Euro: +1.1% to $1.0390
* British pound: +0.9% to $1.2284
* Japanese yen: +0.4% to 155.75 per dollar

Cryptocurrencies
* Bitcoin: +4.1% to $107,850.39
* Ether: +3.7% to $3,349.98

Bonds
* 10-year Treasury yield: 4.63% (unchanged)
* 10-year German yield: 2.53% (unchanged)
* 10-year UK yield: +2 basis points to 4.68%

Commodities
* West Texas Intermediate crude: -1.6% to $76.65 per barrel
* Spot gold: +0.2% to $2,709.83 per ounce