Bitcoin hits new record high, dollar falls ahead of Trump’s inauguration – Live Business | a job
Main events
China’s response to the restoration of TikTok services in the United States
Tik Tok Services in the United States are yet to be restored Donald Trump pledge Over the weekend to give the video app a reprieve from the US ban.
When asked about this, the Chinese Foreign Ministry said at a regular press conference that it believes companies should “independently decide” about their operations and deals, Reuters reported.
The Ministry’s official spokesman Mao Ning He said:
TikTok has been operating in the United States for many years and is very popular among American users. We hope that the United States can seriously listen to the voice of reason and provide an open, fair, just and non-discriminatory business environment for companies operating there.
Trump wrote on Truth Social that after taking office on Monday, he will sign an executive order allowing the Chinese-owned video app additional time to find a buyer before facing a complete shutdown, and proposes that the United States or an American company take 50% ownership. a class.
Chris TurnerING, head of global markets, looked at potential US tariffs.
The big day has finally arrived. Financial markets are in a state of intense anticipation to find out what executive orders will be issued by the newly elected US President Donald Trump It will be released on its first day. There is a lot of focus on immigration controls and declaring a national energy emergency to allow more oil and gas production in the United States. Currency markets are more interested in what he has to say about tariffs and what kind of pain the Oval Office plans to inflict on major trading partners. At nomination hearings last week, the next Treasury Secretary Scott Besant He said tariffs would be necessary to address unfair trade practices, support government revenues, and be used as a negotiating tool.
In terms of what tariffs are currently priced by financial markets, we find online forecasting sites very useful, such as Polymarket and Kalshi. Polymarket is releasing a book on which countries will receive US tariffs in Trump’s first week. The cost of China is 56%, Mexico 54%, Canada 45%, and the European Union only 7%. There is also a case – using Scott Besent’s comments on tariffs as negotiating tools – that the new administration is getting tough on tariffs from the start. For this reason, after rising nearly 10% since late September, the dollar is today less than 1% below its recent high.
Of course, there will be a risk of a dollar correction if it appears that Trump will be more selective about tariffs after all – but that will likely come at a later stage.
Thursday could also be a big day for markets this week, as Trump is scheduled to hold a digital dialogue with leaders at the World Economic Forum in Davos.
Victoria HasslerHead of funds research at Hargreaves Lansdowne, looked at what a second Trump presidency could mean for markets:
New year, new president. The lead-up to Trump’s presidency has been tumultuous and, at times, divisive. However, markets hate uncertainty, and the simple fact that a new president is settled in the White House could be a good thing for the markets. Over the next few weeks and months, we (and the rest of the world) will be watching closely, listening to speeches and analyzing policies. No doubt some will have a more positive impact on markets than others – expect some fireworks and associated volatility as we navigate the next four years.
Despite this, there are good reasons to believe that the impact on the US stock market could be positive, especially for small companies. Because trade tariffs, Trump’s most discussed policy, favor domestic companies over international conglomerates, small businesses are typically more inward-focused. During the election campaign, and since the election, we have heard a lot about tariffs. We expect the reality to be a little more muted than the campaign chat, but it is nonetheless likely that some new tariffs will be imposed, especially when it comes to Chinese trade.
At the same time, we have a supportive backdrop to easing monetary policy. While we do not expect interest rates to fall as quickly as we originally expected, they are certainly on a downward path. Historically, small companies have tended to perform well compared to their larger counterparts in a low interest rate environment, which strengthens the outlook for small companies. Add to this the possibility of lower personal and corporate taxes in the United States, creating a growing tailwind for smaller US companies.
Looking a little further, Trump occupying the White House could cause some jitters in global stock markets. It is yet to be seen how his foreign policy will play out, but it could cause tensions with certain countries, including China, and tariffs could affect growth in markets that depend on exporting goods to the United States. Markets are not keen on geopolitical uncertainty, and if tensions escalate, we expect to see an increase in volatility.
Introduction: Bitcoin hits new high, dollar falls ahead of Trump’s inauguration
Good morning, and welcome to our ongoing coverage of business news, financial markets and the global economy.
Bitcoin, the world’s most popular cryptocurrency, reached a new record high before that Donald TrumpHis inauguration ceremony in Washington, D.C., later today, while the dollar fell.
The president-elect has promised a cryptocurrency-friendly administration, vowing to make the United States the “crypto capital of the planet” and creating a “strategic national bitcoin reserve” during his election campaign.
Trump launched his own cryptocurrency — which briefly tanked over the weekend when his wife Melania It also launched a multi-billion dollar meme cryptocurrency.
Meanwhile, Bitcoin rose 4% and reached a new record high of $109,071 During Asian trading. It reversed its previous losses when it fell to nearly $100,000 when the Melania Trump-backed cryptocurrency was launched.
the dollarwhich has strengthened against other currencies in recent months, fell 0.3% against a basket of major currencies today. The British pound and the euro rose by 0.4% against the dollar.
Asian stocks rose, with Japan’s Nikkei index up 1.17% and Hong Kong’s Hang Seng index up 1.8%. In China, the Shanghai Composite Index rose 0.08% while the Shenzhen Stock Exchange rose almost 1%.
Ipek OzkardskayaThe chief analyst at Swissquote Bank said:
Much of Trump’s trade has already happened — small- and mid-cap stocks soared, energy and financial companies outperformed, and cryptocurrencies soared. So, first week under Trump maybe It doesn’t bring many surprises… (but it might as well!) The Wall Street Journal writes that Donald Trump has already prepared 100 – yes 100 – executive orders to take swift action after his inauguration today, including an order to make cryptocurrencies a political priority and give insiders… The cryptocurrency market has a good voice within his administration.
Trump launched his own cryptocurrency on the Solana blockchain and the coin gained as much as 600% in three days to reach a capitalization of $15 billion before pulling back – just a little – also sending Solana to a new record high.
But beyond this optimism, Trump’s policies are expected to be a double-edged sword. His pro-growth and deregulation policies are expected to benefit the US economy, but his tariff policies will certainly lead to higher inflation and loosen the hands of the Fed’s dovish policy easing. In addition, exploding debt levels are likely to push up borrowing costs.
Trump promised to mark the first day of his presidency with a barrage of executive orders targeting illegal immigration, transgender rights and other right-wing priorities.
ING analyst Chris Turner He said:
Today, all eyes are on the inauguration of Donald Trump, the forty-seventh president of the United States. Financial markets are bracing for a wave of executive orders ranging from immigration, energy and perhaps trade. Regarding tariffs, betting markets are priced marginally in favor of tariff measures against China and Mexico this week. After four months of being bought on these rumours, the dollar is now experiencing some selling due to this fact – but there should be plenty of dollar buyers on the dips.
The latter refers to the practice of buying a weaker asset and selling it once it reaches a new high.
US markets are closed today for the Martin Luther King holiday, and the US economic calendar is quiet this week.
World political and business leaders head to the Swiss ski resort of Davos to attend the annual meeting of the Economic Cooperation Forum World Economic Forumwhich starts today.
Agenda
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2025-01-20 10:48:00
