Global shares exhibited a mixed performance as investors responded to the inauguration of U.S. President Donald Trump. The market reaction was marked by cautious optimism, with some analysts suggesting that the new administration could potentially benefit the global economy.
Market Performance Overview
In Europe, the markets showed slight gains, with France’s CAC 40 increasing by 0.1% to 7,739.02. Germany’s DAX remained stable at 20,988.89, while the UK’s FTSE 100 also saw a modest rise of 0.1%, closing at 8,533.10. In the U.S., futures indicated a positive outlook, with the S&P 500 futures up by 0.3% and the Dow Jones Industrial Average futures gaining 0.4%.
Despite this initial optimism, concerns lingered regarding potential trade policies under the Trump administration. An “America First Trade Policy” memo suggested that immediate tariff increases would not be enacted, which may have alleviated some investor fears. However, the memo also indicated a comprehensive reassessment of U.S. trade policy, raising questions about the long-term effects on global trade dynamics.
Regional Market Reactions
In Asia, market reactions were mixed. Hong Kong’s Hang Seng index rose by 0.9% to 20,106.55, largely driven by a significant rebound in shares of Country Garden, a troubled Chinese property developer, which surged by 17.5% after receiving an extension to negotiate with creditors. Conversely, the Shanghai Composite index saw a slight decline of 0.1%, closing at 3,242.62, reflecting the mixed sentiment in the region.
Japan’s Nikkei 225 index gained 0.3%, finishing at 39,027.98, while Australia’s S&P/ASX 200 experienced a more robust increase of 0.7%, closing at 8,402.40. South Korea’s Kospi, however, slipped marginally by less than 0.1% to 2,518.03. Notably, shares in Fuji Media Holdings, which includes the prominent broadcaster Fuji TV, recovered from earlier losses to finish 2.1% higher after facing volatility due to a scandal that led major companies, including Toyota Motor Corp., to halt advertising on Fuji TV shows.
Energy Sector and Currency Trading
In the energy sector, benchmark U.S. crude oil prices fell by 97 cents, settling at $76.42 a barrel. Meanwhile, Brent crude, the international standard, decreased by 32 cents to $79.84 a barrel. These declines occurred amid ongoing fluctuations in global oil demand and supply dynamics, as traders remained vigilant about geopolitical developments and their potential impact on energy prices.
Currency trading reflected a stable environment, with the dollar remaining unchanged at 155.64 Japanese yen. The euro experienced a slight decline, trading at $1.0362, down from $1.0416. This stability in currency markets suggests that investors are cautiously optimistic, awaiting further developments in U.S. economic policy and its implications for global trade and investment flows.
📎 Related coverage from: go.com
