In summary
• Markets cap a decent week last week, with the afterglow of a weaker US inflation print buoying interest rate cut hopes.
• Company earnings results calendar gets into gear this week, as market breadth shows some welcome signs of improvement.
• A second Trump US presidential term starts, with Trump arguably the most powerful US president in modern political history.
• A new Trump administration will have both economic and investment consequences, and markets will be paying close attention.
Markets cap a decent week last week, with the afterglow of a weaker US inflation print buoying interest rate cut hopes
Markets capped a decent week on Friday, with the afterglow of Wednesday’s weaker-than-expected US consumer inflation print buoying hopes for the pace and scale of interest rate cuts later this year. The US S&P500 equity index posted its largest weekly gain since the US election back in November, up +2.91%, while the pan-European STOXX600 equity index managed its strongest weekly performance since September, up +2.37%, both in local currency price return terms. Today is US presidential inauguration day, with Donald Trump set to be sworn in as the 47th US president – coincidentally, the US is also marking a day’s holiday today to observe Martin Luther King Jr day, so both US stock and bond markets will be closed.
Company earnings results calendar gets into gear this week, as market breadth shows some welcome signs of improvement
Last week saw a decent start to the latest calendar quarterly results season, with the big US banks in particular delivering a strong set of numbers. This week, the results calendar gets into gear, with forty US S&P500 equity index constituent companies, as well as thirteen pan-European Stoxx600 equity index constituent companies reporting. In terms of the market impact, last week we saw a welcome improvement in market breadth, with the equal-weight version of the US S&P500 equity index outperforming its market-capitalisation-weighted comparison.
A second Trump US presidential term starts, with Trump arguably the most powerful US president in modern political history
Trump is set to start his second presidential term later today, but he has already made history. As a reminder, in last year’s US election, Trump not only won the White House, but he also won the popular vote for the first time for a Republican nominee in twenty years, winning all seven US swing states; Trump also won both houses of US Congress, and later today he will become only the second president in US history to serve non-consecutive terms, and the first for well over a hundred years. Alongside an existing US Supreme Court Republican majority, Trump is arguably starting office this week as the most powerful US president in modern political history.
A new Trump administration will have both economic and investment consequences, and markets will be paying close attention
Given Trump’s first term experience, expectations are that he will hit the ground running this week as he starts his second term. Political watchers are expecting a raft of new presidential executive orders, from tightening immigration rules, to repealing energy and environmental regulations, to introducing an increase in global trade tariffs, with China likely first in the crosshairs. Alongside expected action on Russia-Ukraine, where Trump has staked his reputation on getting a swift resolution to the war, decisions out of the new Trump administration will have both economic and investment consequences, and markets will be paying close attention.
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0203 418 0257
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References
Source: https://www.brooksmacdonald.com/individuals/resources/insights/weekly-market-commentary-second-trump-us-presidential-term-starts-week-and
Weekly Market Commentary: A second Trump US presidential term starts this week, and markets will be paying close attention
In summary
• Markets cap a decent week last week, with the afterglow of a weaker US inflation print buoying interest rate cut hopes.
• Company earnings results calendar gets into gear this week, as market breadth shows some welcome signs of improvement.
• A second Trump US presidential term starts, with Trump arguably the most powerful US president in modern political history.
• A new Trump administration will have both economic and investment consequences, and markets will be paying close attention.
Markets cap a decent week last week, with the afterglow of a weaker US inflation print buoying interest rate cut hopes
Markets capped a decent week on Friday, with the afterglow of Wednesday’s weaker-than-expected US consumer inflation print buoying hopes for the pace and scale of interest rate cuts later this year. The US S&P500 equity index posted its largest weekly gain since the US election back in November, up +2.91%, while the pan-European STOXX600 equity index managed its strongest weekly performance since September, up +2.37%, both in local currency price return terms. Today is US presidential inauguration day, with Donald Trump set to be sworn in as the 47th US president – coincidentally, the US is also marking a day’s holiday today to observe Martin Luther King Jr day, so both US stock and bond markets will be closed.
Company earnings results calendar gets into gear this week, as market breadth shows some welcome signs of improvement
Last week saw a decent start to the latest calendar quarterly results season, with the big US banks in particular delivering a strong set of numbers. This week, the results calendar gets into gear, with forty US S&P500 equity index constituent companies, as well as thirteen pan-European Stoxx600 equity index constituent companies reporting. In terms of the market impact, last week we saw a welcome improvement in market breadth, with the equal-weight version of the US S&P500 equity index outperforming its market-capitalisation-weighted comparison.
A second Trump US presidential term starts, with Trump arguably the most powerful US president in modern political history
Trump is set to start his second presidential term later today, but he has already made history. As a reminder, in last year’s US election, Trump not only won the White House, but he also won the popular vote for the first time for a Republican nominee in twenty years, winning all seven US swing states; Trump also won both houses of US Congress, and later today he will become only the second president in US history to serve non-consecutive terms, and the first for well over a hundred years. Alongside an existing US Supreme Court Republican majority, Trump is arguably starting office this week as the most powerful US president in modern political history.
A new Trump administration will have both economic and investment consequences, and markets will be paying close attention
Given Trump’s first term experience, expectations are that he will hit the ground running this week as he starts his second term. Political watchers are expecting a raft of new presidential executive orders, from tightening immigration rules, to repealing energy and environmental regulations, to introducing an increase in global trade tariffs, with China likely first in the crosshairs. Alongside expected action on Russia-Ukraine, where Trump has staked his reputation on getting a swift resolution to the war, decisions out of the new Trump administration will have both economic and investment consequences, and markets will be paying close attention.
Contact us
0203 418 0257
info@onekc.co.uk
References
Source: https://www.brooksmacdonald.com/individuals/resources/insights/weekly-market-commentary-second-trump-us-presidential-term-starts-week-and
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