Rudolph Angler Global markets experienced significant volatility after Donald Trump’s inauguration, with stocks, currencies, commodities, and cryptocurrencies reacting to his policies.
Stocks and Currencies Show Turbulence
On Monday, European markets rose after Trump’s team suggested initial orders might exclude tariffs on Chinese, Canadian, and Mexican goods.
US stock markets were closed, but futures indices gained. The dollar weakened sharply, pushing the euro to a two-week high above 1.04.
Gold prices climbed, Bitcoin hit a record high above $109,000, and crude oil prices fell for a third straight day.
During Tuesday’s Asian session, trends reversed as Trump announced 25% tariffs on Canadian and Mexican imports starting February 1.
The dollar regained strength, pressuring other currencies, including the euro, while US equity futures declined, signaling potential European market losses.
Safe-Haven Assets Surge Amid Tariff Concerns
Investors turned to safe-haven assets like gold and the Japanese yen as Trump’s tariff policies increased market uncertainty.
Gold prices rose to $2,725 per ounce early Tuesday, the highest since November, while the USD/JPY pair dropped below 155.
Analysts suggested the dollar’s appeal as a haven might grow amid ongoing trade frictions and tariff uncertainties.
“Gold continues its upward trajectory due to safe-haven demand,” noted strategist Dilin Wu, emphasizing its current appeal to risk-averse investors.
Bitcoin Peaks and Retreats
Bitcoin soared to a record high of over $109,000 on Monday but quickly retreated due to uncertainty about Trump’s crypto policies.
By early Tuesday, Bitcoin rebounded to $103,000 after dropping near $100,000, reflecting ongoing volatility in the cryptocurrency market.
Trump previously announced plans to establish a US Bitcoin Reserve and unveiled meme coins on the Solana blockchain, sparking temporary rallies.
Analysts believe clearer crypto regulations are needed to stabilize the market and regain trader confidence under the new administration.
Oil Prices Drop Amid Energy Policy Shifts
Oil prices fell as Trump pledged to declare a “national energy emergency” to boost US production and reverse climate policies.
WTI futures rose modestly during the Asian session, reaching $76.89 per barrel, while Brent climbed to $80.20 per barrel.
The oil market remains uncertain as Trump plans to address the Ukraine-Russia conflict, potentially influencing sanctions and market dynamics.
Investors and analysts remain cautious as Trump’s policy shifts continue to drive significant market volatility across multiple sectors.