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The first few hours of Trump administration has underscored that policy environment will be dynamic once again and markets should brace for volatility
Charu Chanana, chief investment strategist at Saxo, said
While there was no immediate tariff imposed on China, providing some relief to the market, President Trump has initiated tariffs on Canada and Mexico
Kiyong Seong, lead Asia macro strategist at Societe Generale, said
I'll say one positive surprise we may see this year is actually some sort of resolution between U.S. and China from an economic point of view, not a strategic point of view
Andrew Swan, portfolio manager at Man GLG., saidMarkets will clearly try to anticipate and dissect which sectors and areas will be targeted by tariffs so the volatility on markets will come from that.
Amelie Derambure, senior multi-asset manager at French firm Amundi, addedIt's Trump's world and we are all just living in it - and the markets are going to have to get used to that again
Kyle Rodda, senior markets analyst at Capital.com, addedThe approach will be chaotic, unpredictable, spur of the moment and driven by Trump himself,
said Russel Matthews, senior portfolio manager, global macro at RBC BlueBay Asset Management
That support may, however, prove rather short-lived as things can – as we learned yesterday with Canada and Mexico – change abruptly on protectionism, and the euro remains generally unappealing from a number of macro fundamentals,
he said
As a BRICS nation... they'll have a 100 per cent tariff if they so much as even think about doing what they thought, and therefore they'll give it up immediately,
Speaking to the media during his signing ceremony at the Oval Office, President Trump said ... referring to the reduction in the use of the dollar in global trade
If the BRICS nations want to do that, that's OK, but we're going to put at least a 100 per cent tariff on the business they do with the United States... It's not even a threat. In fact, since I made that statement, Biden said, they have us over a barrel. I said, No, we have them over a barrel. And there's no way they're going to be able to do that,
Trump addedWe may. But we're not ready for that yet,
Trump said
In the last two weeks we have seen two conflicting views from the new administration - the hard-liners on tariffs and those who favour a more market-friendly approach,
Frederik Ducrozet, head of macroeconomic research at Pictet Wealth Management, saidSo, this perception that the door is open to negotiations is important. But it doesn't tell us where we will end and I will be waiting for details on the scope of tariffs, which sectors will be impacted, ... The fact that he might be choosing a gradual approach is an encouraging sign."
he said, addingIt doesn't mean tariffs won't be imposed, but it has been taken as an indication towards gradualism and against universality,
said Taylor Nugent, a senior markets economist at National Australia BankThere will be a huge amount for markets to digest this week, but if the implementation of trade and immigration policy does not negatively disrupt supply chains and the labor force, financial markets may unwind some of their recent inflation caution,
wrote analysts at ANZ in a note