Markets experienced sharp volatility after Donald Trump’s inauguration, with stocks, currencies, commodities, and cryptocurrencies showing significant movement.
Investors focused on Trump’s potential implementation of campaign tariff pledges, leading to uncertainty and fluctuating sentiment.
Mixed Market Movements on Trump’s Tariff Plans
European markets gained on Monday after signals that tariffs on Mexico, Canada, and China might be excluded initially.
The US dollar weakened, pushing the euro to a two-week high above 1.04. Bitcoin hit a record high over $109,000 before retreating.
Gold prices climbed steadily, while crude oil declined amid energy policy concerns. US markets remained closed due to a public holiday.
Asian markets reversed trends on Tuesday after Trump announced 25% tariffs on imports from Canada and Mexico starting February 1.
The dollar regained strength, pressuring other currencies. US equity futures declined, signaling potential spillovers into European markets.
Risk-Aversion Drives Safe-Haven Demand
Uncertainty about Trump’s policies has driven investors to safe-haven assets like gold and the Japanese yen.
Gold prices rose 0.72% early Tuesday to $2,725 per ounce, while the yen strengthened, pushing USD/JPY below 155.
Market analyst Kyle Rodda noted heightened sensitivity to trade policies, stating, “Sentiment can shift in an instant with policy changes.”
The euro pared earlier gains, retreating below 1.04 as the greenback regained safe-haven appeal amid tariff concerns.
Bitcoin Volatility Amid Regulatory Uncertainty
Bitcoin hit a new record high of $109,000 on Monday but quickly retreated due to unclear cryptocurrency policies under Trump’s administration.
By early Tuesday, Bitcoin rebounded from a low near $100,000 to $103,000. “Clarity on regulations is key to stabilizing the market,” said strategist Dilin Wu.
Over the weekend, Trump announced plans for a US Bitcoin Reserve and launched meme coins on the Solana blockchain.
Crypto markets remain optimistic, expecting Trump to introduce pro-crypto policies in his first 100 days.
Oil Prices Decline on Energy Policy Shifts
Oil prices fell for a third day as Trump declared plans to increase US production and reverse climate-focused policies.
WTI futures rose modestly to $76.89 per barrel during the Asian session, while Brent climbed to $80.20.
Trump’s promise to declare a “national energy emergency” could increase US production, further pressuring global oil prices.
The market remains uncertain as Trump’s plans for resolving the Ukraine-Russia conflict could impact crude prices through sanctions or policy shifts.
