President Trump's pro-business policies and decision not to impose tariffs led to market highs.

From Investing.com: 2025-01-27 01:48:00

US equities markets rose due to President Trump’s pro-business policies and decision to not impose tariffs on major trading partners yet. The Bank of Japan raised rates to 0.5%, the highest since 2008. The week ahead sees markets shift attention toward Central Bank policy with the ECB and Fed meeting in focus. President Trump’s decision not to impose tariffs on major trading partners sparked a positive reaction in the markets, pushing the S&P 500 to fresh all-time highs. The Bank of Japan raised rates to 0.5%, the highest since 2008. The crypto sector benefited from the incoming administration’s policies. In the week ahead, focus will be on Central Bank meetings with the ECB and Fed in the spotlight.

In the Asia Pacific region, Japan and China will release important economic data. Japan’s month-end data will cover CPI, labor, and employment, with the Bank of Japan keeping a close eye on service prices after raising rates to 0.5%. China’s PMI data is expected to show a slight increase, while Australia will release Q4 inflation data. In developed markets, the FOMC and ECB meetings will be closely watched. The Fed is looking for signs of economic weakness before making more rate cuts, while the ECB is expected to cut rates due to struggling growth. The Euro Area may see a weaker winter before growth improves.

The focus of the week is on the US Dollar Index (DXY) as it continues its descent from two-year highs. The DXY broke below the ascending trendline after the Presidential Inauguration and has bounced off a key area of support. A bounce could push the DXY back toward resistance levels, while a break below support zones could lead to further declines.



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