From Barchart: 2025-01-20 02:44:50

As investors anticipate policy announcements during Trump’s second presidency, the U.S. dollar dipped while stocks remained cautiously positive. Markets are watching for foreign exchange and rate hike moves as Trump officially starts his term at noon Eastern Time.

Trump’s inaugural rally highlighted American strength, hinting at immediate actions like executive orders. Market uncertainty rose with the launch of his digital token, which surged to over $70 before dropping to around $50.

U.S. equity futures weakened during the Asia session, reflecting cautious sentiment. The dollar, up over 8% against the euro since September, remains near a two-year high. Analysts warn aggressive price actions in yields and the dollar could challenge equity valuations.

Japan’s Nikkei 225 index climbed 1.2% in response to a more positive sentiment. Investors are watching Japan’s potential rate hike for global market implications. Chief Investment Officer Nick Ferres advises caution, noting market expectations are likely already priced in.

As markets adjust to potential policy shifts, Sector P/E Ratios will be crucial in assessing sector performance under new tariffs. Historical Earnings can help track trends across major companies, offering insights into risks and opportunities.



Read more at Barchart:: Dollar Eases and Stocks Remain Cautiously Positive…