European Stocks Rise, Dollar Weakens Amidst Trump Inauguration
Equity Markets
European shares opened marginally higher, led by technology stocks. Futures for the S&P 500 and Nasdaq 100 remained stable, reflecting the US market's closure on Monday for a holiday.
Currency Market
The US dollar declined for the first time in three days, although it remains near its 13-month high. Expectations of fiscal stimulus and higher tariffs under Trump's presidency could support the dollar's strength.
Bitcoin and Asian Stocks
Bitcoin surged to a record high after Trump and his wife unveiled their own memecoins. Asian stocks gained on Monday following Trump's "very good" conversation with Chinese President Xi Jinping.
Federal Reserve and Treasury Yields
Some analysts anticipate that Trump's stimulus measures may lead to a rate hiking cycle by the Federal Reserve. This could result in elevated Treasury yields, with Nomura Holdings and T. Rowe Price predicting a potential 10-year yield of 6% this year.
Trump's Policy Stances
Trump's stance on issues such as trade with China and climate change will likely impact investments in sectors like semiconductors, electric vehicles, and shipbuilding.
Davos Economic Forum
The World Economic Forum's annual meeting commences on Monday, with attendees including prominent business leaders like Larry Fink, Ray Dalio, and Marc Benioff. Trump will address the forum virtually three days after his inauguration.
Key Economic Events
Monday:
* World Economic Forum in Davos begins
* Donald Trump sworn in as 47th US president
Tuesday:
* UK jobless claims, unemployment
Wednesday:
* Canada CPI
* New Zealand CPI
* Malaysia CPI, rate decision
* South Africa retail sales, CPI
Thursday:
* South Korea GDP
* Eurozone consumer confidence
* Turkey rate decision
* Norway rate decision
* Canada retail sales
Friday:
* Japan CPI, rate decision
* India, euro area, UK PMIs