Trump's Digital Dollar Dance: Markets Brace for Policy Changes

Global stocks showed cautious positivity as Donald Trump prepared to begin his second presidential term, with investors anticipating policy shifts and a potential Japanese rate hike. Market responses were limited on the U.S. holiday, with Asian and European stocks showing slight fluctuations. Trump's potential tariff threats loomed over global trade.

Global stocks and currency markets showed cautious positivity Monday as investors keenly awaited policy announcements accompanying Donald Trump's second presidential term. With a Japanese rate hike anticipated this week, investors navigated a largely quiet U.S. holiday market.

Initial responses were mixed: European stocks edged lower, with STOXX 600 down 0.2% and major indices generally flat. Meanwhile, the dollar gained over 8% against the euro since September. Trump's ambitious tariff propositions on Chinese and global goods generated widespread market anxiety.

Cryptocurrency markets reacted swiftly, with Bitcoin hitting a record high and Trump's new $TRUMP cryptocurrency experiencing a volatile launch. Import-focused countries, particularly China and Canada, remained in sharp focus, awaiting trade policy modifications under Trump's administration.

(With inputs from agencies.)