Jan 17 (Reuters) - As Donald Trump's inauguration as the 47th U.S. president draws near, global investors are preparing for potential impacts on markets, global trade, and international relations.
Trump is expected to issue a series of executive orders right from Day One, covering a range of topics including taxes and tariffs, coinciding with the start of the fourth-quarter earnings season.
Financial experts from various locations such as Singapore, New York, and London share insights on what to expect in the upcoming week.
The U.S. markets will be closed on Monday for Martin Luther King Jr. Day, potentially delaying investors' reactions until Tuesday. Market focus will likely be on early tariff decisions, given recent market turbulence caused by related announcements.
Anticipation surrounds Trump's proposed tax cuts and tariffs as traders predict potential inflation and domestic growth stimulations, while concerns linger about the already high U.S. debt-to-GDP ratio.
The corporate earnings season for the last quarter of 2024 will shed light on the 2025 outlook, with major companies like Netflix, Pfizer, Procter & Gamble, and American Express sharing their results.
In parallel, geopolitical events such as ongoing conflicts in Ukraine and the Middle East, particularly the expected peace talks in Gaza, influence market sentiments and may impact oil prices.
The upcoming policy meeting of the Bank of Japan is anticipated to address the weak yen against a strong dollar, with discussions possibly veering towards a rate hike, following recent statements indicating the potential for such a move.
As markets consider how Trump's policies could influence global markets, hope is placed in potential clarity post-inauguration, with futures hinting at a probability of a January rate hike.