World Markets Mixed as Trump Takes Office, Dollar Strengthens

On Friday, January 17, U.S. financial markets ended on a positive note, with the S&P 500, Dow, and Nasdaq registering their most significant weekly gains in recent months. This rise in the markets was driven by optimism regarding the economy's resilience and the possibility of Federal Reserve rate cuts. Additionally, solid earnings reports from banks, along with encouraging data on homebuilding and manufacturing, helped boost market sentiment, overshadowing concerns related to Trump’s policies and potential inflation risks.

Recent economic data indicated that industrial production in the United States increased by a notable 0.9% in December, far exceeding the anticipated growth of 0.3%. Furthermore, housing starts surged 15.8% to reach an annualized rate of 1.499 million units, even though building permits saw a slight decline of 0.7%, landing at 1.483 million.

Among the S&P 500 sectors on Friday, most closed higher, with consumer discretionary, information technology, and communication services leading the way. However, healthcare and real estate stocks did not follow this trend and ended the day lower.

The Dow Jones Industrial Average saw an increase of 0.78%, closing at 43,487.83. Meanwhile, the S&P 500 rose 1.00% to finish at 5,996.66, and the Nasdaq Composite advanced by 1.51%, settling at 19,630.20.

Asian Markets Today

• In Japan, the Nikkei 225 ended the day higher by 0.30% at 39,000.50, driven by advancements in the shipbuilding, machinery, and rubber sectors.
• Australia’s S&P/ASX 200 index gained 0.66%, concluding the session at 8,402.40, fueled by increases in the gold, financials, and metals & mining sectors.
• India’s Nifty 50 saw a decline of 1.25%, closing at 23,053.05, with the Nifty 500 also down by 1.63% at 21,452.90, impacted by losses in the real estate, consumer durables, and power sectors.
• In China, the Shanghai Composite dipped 0.05% to close at 3,242.62, while the Shenzhen CSI 300 saw a slight rise of 0.08%, reaching 3,832.61.
• The Hong Kong Hang Seng index finished higher by 0.91% at 20,106.55.

Eurozone Market Update

• As of 05:30 AM ET, the European STOXX 50 showed a modest increase of 0.05%.
• Germany’s DAX fell slightly by 0.08%.
• France’s CAC rose by 0.25%.
• The U.K.’s FTSE 100 index moved higher by 0.12%.
• European stocks remained relatively flat as investors assessed potential tariff plans from Trump, with a steady STOXX 600 but a 0.2% decline in Germany’s DAX due to concerns in the automotive sector.

Commodities Update

• Crude Oil WTI was trading lower by 1.98% at $75.83 per barrel, while Brent crude dropped 1.11% to $79.24 per barrel as investors reevaluated the delayed U.S. tariff plans and Trump’s focus on boosting domestic energy production.
• Natural gas experienced a decline of 2.20%, settling at $3.861.
• Gold traded down by 0.50% at $2,735.09, silver was down by 0.09% to $31.108, and copper fell by 1.88% to $4.2862.

U.S. Futures Outlook

As of 05:30 AM ET, Dow futures increased by 0.44%, S&P 500 futures rose by 0.49%, and Nasdaq 100 futures gained 0.55%.

Forex Market Update

• The U.S. Dollar Index rose by 0.55% to 108.66, while USD/JPY gained 0.22% to 155.91 and USD/AUD increased by 0.76% to 1.6058.
• The dollar made a comeback on Tuesday, recovering somewhat from its steep decline the previous day, as President Trump mentioned potential tariffs of 25% on Canada and Mexico by February 1.

markets, economy, Trump