The previous Trump term saw corporate tax cuts that brought more liquidity to markets, encouraging investment into cryptocurrency
business1 day ago
Global stock markets diverged on Wednesday as traders fret over the impact of Donald Trump's presidency on the Chinese and global economies, with fears that his policies could also reignite US inflation.
The prospect of higher prices on the back of Trump's planned tax cuts, import tariffs and an easing of regulations gave fresh impetus to the dollar, which has rallied since the Republican's election win last week.
Focus is now on the release of key US October consumer price data due later in the day, with expectations for a slight uptick from the previous month.
"It's particularly pertinent given concerns that Trump's tariff policies will be inflationary," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
"If prices are already looking unruly, expectations will rise for Trump's threats to be watered down."
The reading will be pored over for an idea about the Federal Reserve's plans for borrowing costs when it meets again in December.
Major European indices edged higher around midday Wednesday.
Shares in Siemens Energy surged more than 15 per cent after the German company posted positive annual results and upgraded its outlook.
Asian markets mostly ended lower as Trump named known China hawks to key cabinet positions, fuelling concerns about another debilitating trade war between the economic superpowers.
"We expect the effective tariff rate on US imports from China to rise to around 40 per cent," said Harry Murphy Cruise at Moody's Analytics.
"That would effectively double the rate today," he told AFP.
"It's likely the threat of further tariffs up to the touted 60 per cent would be used as a negotiating tool."
Cruise said "China would almost certainly follow suit, imposing tariffs of its own of equal magnitude".
The threat of another standoff comes as Beijing struggles to kickstart growth at home, unveiling a raft of measures at the end of September but leaving traders disappointed.
China's state media on Wednesday reported that Beijing had announced a raft of tax policies aimed at boosting the country's ailing property market.
Wall Street provided a negative lead, with its three main indices finishing in the red on Tuesday as investors took a breather from a week-long rally to more record highs.
Traders are keeping tabs on bitcoin after it came within a whisker of breaking $90,000 for the first time on Tuesday owing to Trump's pro-crypto campaign pledges.
The previous Trump term saw corporate tax cuts that brought more liquidity to markets, encouraging investment into cryptocurrency
business1 day ago
The arrival of fintech players is also giving new channels for people to remit and receive money
business1 day ago
The scheme is being launched under a UAE Cabinet Resolution which introduced an alternative voluntary savings scheme for private sector employers and employees
business1 day ago
The company reported the highest third-quarter EBITDA in history generating Dh376.7 million, it witnessed a 14 per cent YoY increase
business1 day ago
The new feature allows customers to use a single card to pay from different funding sources
business2 days ago
Al Seeb Developers’ Royal Regency Suites to be ready by March 2027
business2 days ago
Reportage Properties offers special discounts on the company’s projects in the UAE, Saudi Arabia, Egypt and Turkey
business2 days ago
Medical hospitalisation scheme is now available to all persons who are 70 years old and above
business2 days ago