Trump's Unpredictable Return: Market Reactions and Policy Expectations

As Donald Trump prepares for his second term, markets react with caution to potential policy shifts. Investors focus on foreign exchange and stock futures amid uncertainty over tariffs and inflation. Trump's inauguration and economic agenda could influence global market dynamics.

European and global markets are on edge as they anticipate the implications of Donald Trump's upcoming presidency. With U.S. markets closed for Martin Luther King Day, attention is shifting to foreign exchange and futures.

Historically, market trends align with economic cycles, but Trump's presidency is known for introducing volatility and unexpected policy shifts. His return, as the first President to serve non-consecutive terms since Grover Cleveland, brings both anticipation and nervousness.

Traders speculate whether the dollar's recent strength will wane if Trump's policies are gradually implemented. There is ongoing debate on whether tariffs could be beneficial or detrimental to the dollar. Trump has signaled a flurry of executive orders and policy moves, including energy deregulation and immigration reforms, indicating possible inflation pressures.

(With inputs from agencies.)