Trump's Second Term: A Financial Rollercoaster

Uncertainty looms over investors as Donald Trump begins his second U.S. presidency. His unexpected leniency towards China and looming tariffs on Mexico and Canada create market fluctuations. While currency and energy sectors react sharply, investors see opportunity amidst volatility, bracing for the impact of tariffic trade policies.

The financial world braces for uncertainty as Donald Trump embarks on his second term as U.S. President. Initial leniency towards China provided momentary relief, but imminent 25% tariffs on Mexico and Canada sent their currencies tumbling.

Investors remained on edge as Trump hinted at future universal tariffs, causing a fickle performance for the dollar. While Wall Street showed a modest rise in anticipation of Trump's pro-business policies, the risks of a trade deficit shake-up loomed large.

Asian markets reacted with caution, seeing gains for China's yuan and losses in green energy stocks after the U.S. exited the Paris climate accord. In Davos, global leaders stressed the perils of protectionism, with economies worldwide bracing for the potential impact of Trump's trade strategies.

(With inputs from agencies.)