European Markets Brace for U.S. Policy Shifts in 2025

European and global markets are navigating a challenging start to 2025, driven by U.S. interest rates and anticipated policies of President-elect Donald Trump. The euro and sterling face pressure, while European stocks look to build on last year's gains amidst political uncertainties in France and Germany.

As markets enter 2025, European and global investors are keeping a watchful eye on U.S. monetary policies. The Federal Reserve's interest rate trajectory has left the dollar strong, pressuring the euro and sterling to multi-month lows.

Adding to market anxieties are the forthcoming policies of President-elect Donald Trump, which impact inflation and tariffs. Meanwhile, the European stock markets adjust to a quieter start after a positive end to the week in Asia.

The euro faces turbulence amid possible rate cuts from the ECB, while the pound grapples with the dollar's surge. Additionally, Tesla's delivery setback and Biden's opposition to a significant steel acquisition add layers of complexity.

(With inputs from agencies.)