Global stock markets rallied this week following Donald Trump’s inauguration on Monday, with both European and US markets hitting new highs. The US dollar weakened, allowing other G-10 currencies to strengthen, while commodities were mixed, with gold nearing all-time highs. European markets surged, with the Euro Stoxx 600 and Germany’s DAX repeatedly reaching new highs.
Investors remain cautious about potential global trade wars stemming from Trump’s tariff threats, as well as uncertainty about the global inflation outlook. Meanwhile, European luxury goods stocks performed strongly due to Trump’s less aggressive tariffs on China, with positive earnings from Adidas boosting sentiment in the sector.
On Wall Street, US stock markets continued their rally, with the Dow Jones, S&P 500, and Nasdaq Composite all gaining over the past five trading days. The S&P 500 saw gains in ten out of eleven sectors, with industrials and technology leading the way. Meanwhile, the Magnificent Seven stocks had mixed performances, with Netflix reporting strong quarterly results.
In Asia, the Bank of Japan raised its interest rate as expected, strengthening the Japanese yen, while Chinese markets rebounded after the government announced measures to support its stock markets. The Japanese Nikkei 225 declined following the BOJ’s decision, while the Hang Seng Index and China A50 saw gains for the week.
Overall, global markets responded positively to Trump’s actions and remarks, with investors closely monitoring potential trade tensions and inflation outlooks, as well as developments in various sectors and regions.
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