Global shares mixed in muted reaction to inauguration of President Donald Trump
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Global shares had a mixed response on Tuesday to the inauguration of US President Donald Trump. France's CAC 40 saw a slight increase of 0.1% to 7,739.02, while Germany's DAX remained steady at 20,988.89. Britain's FTSE 100 also experienced a minor rise of 0.1% to 8,533.10. The future for the S&P 500 was up by 0.3% and that for the Dow Jones Industrial Average gained 0.4%.
US markets were closed on Monday due to the Martin Luther King Jr. Day holiday. Some analysts suggested that the inauguration could bring a sense of optimism to global markets, while others warned that the threat of higher tariffs might dampen sentiment.
After taking office on Monday, Trump released an "America First Trade Policy" memo indicating no immediate action on raising tariffs, potentially easing immediate concerns about threats of double-digit tariffs on all imports. However, the plan does call for a broad reassessment and overhaul of US trade policy.
Stephen Innes, managing partner at SPI Asset Management, said: "In a twist that calmed nerves across global markets ... President Trump revealed he would not, contrary to expectations, roll out new tariffs immediately.". Concerns about the impact of Trump’s policies on China have somewhat eased as both sides have pledged to work to improve relations. Hong Kong’s Hang Seng index rose 0.9% to 20,106.55, partly boosted by embattled Chinese property developer Country Garden, whose shares soared 17.5% after it received a reprieve on its deadline for reaching an agreement with its creditors.
