World Markets Mixed as Trump Takes Office, Dollar Strengthens

On January 17, U.S. markets ended on a positive note, with major indices such as the S&P 500, Dow, and Nasdaq achieving their best weekly performance in several months. This surge in the markets was fueled by optimism surrounding economic resilience and potential interest rate cuts from the Federal Reserve. Strong earnings reports from banks, combined with positive data in homebuilding and manufacturing sectors, overshadowed concerns regarding Trump's policies and inflation.

Recent economic data highlighted that U.S. industrial production increased by 0.9% for December, significantly exceeding the forecast of 0.3%. In addition, housing starts surged by 15.8%, reaching an annualized rate of 1.499 million units, although building permits saw a slight decline of 0.7% to total 1.483 million.

On Friday, most sectors in the S&P 500 concluded the trading day higher, with notable contributions from consumer discretionary, information technology, and communication services. However, the healthcare and real estate sectors experienced losses, diverging from the overall market trend.

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

Asian Markets Today

• In Japan, the Nikkei 225 index closed up by 0.30% at 39,000.50, boosted by gains in the shipbuilding, machinery, and rubber sectors.
• Australia’s S&P/ASX 200 also saw a rise of 0.66%, concluding at 8,402.40, driven by positive performances in gold, financials, and metals and mining.
• Conversely, India’s Nifty 50 index fell by 1.25% to end at 23,053.05, with declines in the real estate, consumer durables, and power sectors. The Nifty 500 also dropped by 1.63%, closing at 21,452.90.
• China’s Shanghai Composite dipped slightly by 0.05%, closing at 3,242.62, whereas the Shenzhen CSI 300 saw a marginal increase of 0.08%, finishing at 3,832.61.
• Additionally, the Hong Kong Hang Seng index rose by 0.91% to close at 20,106.55.

Eurozone Market Update

• As of 05:30 AM ET, the European STOXX 50 index noted a minor increase of 0.05%.
• In Germany, the DAX index experienced a slight decline of 0.08%.
• France’s CAC index reported an increase of 0.25%.
• The U.K.’s FTSE 100 index traded higher by 0.12%.
• Overall, European stocks showed a stable trend as investors analyzed Trump’s proposed tariff plans, with the STOXX 600 remaining steady amid concerns over the automotive sector in Germany.

Commodity Market Overview

• Crude oil prices saw a dip, with WTI trading 1.98% lower at $75.83 per barrel, and Brent crude down by 1.11% to $79.24 per barrel.
• These declines were attributed to investors reassessing the delayed U.S. tariff plans along with Trump’s focus on boosting domestic energy production.
• Natural gas prices decreased by 2.20% to $3.861. Additionally, gold traded lower by 0.50% at $2,735.09, while silver fell 0.09% to $31.108 and copper dropped by 1.88%, landing at $4.2862.

U.S. Futures Update

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

Forex Market Insights

• The U.S. Dollar Index experienced a rise of 0.55%, reaching 108.66. The USD/JPY currency pair gained 0.22% to trade at 155.91, and the USD/AUD pair rose by 0.76% to 1.6058.
• After a sharp decline, the dollar showed signs of recovery as President Trump hinted at possible 25% tariffs on Canada and Mexico by February 1.

Markets, ETFs, Economy