A look at the day ahead in European and global markets from Rae Wee
An air of caution lingered over markets on Thursday as Donald Trump’s impending return to the White House – and his plans for hefty import tariffs, tax cuts and immigration restrictions – set the tone for the new year.
With just over two weeks until the U.S. President-elect’s Jan. 20 inauguration, investors were bracing for unpredictability in Trump’s economic agenda and what that would mean for the global economy.
That uncertainty left shares in Asia vulnerable to a selloff on Thursday, though those in Europe looked set to fare better with futures pointing to a positive open.
Chinese stocks in particular fell heavily, as did the yuan which weakened to its lowest level against the U.S. dollar in almost 14 months.
Trump’s talk of tariffs in excess of 60% on imports of Chinese goods has coincided with central government pledges of proactive policies to promote growth this year, muddying the outlook for an economy that has struggled for momentum.
China and other Asian factory powerhouses ended 2024 on a soft note, data on Thursday showed, as expectations for the new year were tainted by growing trade risk from a second Trump presidency and persistently weak