The dollar drifted lower and global stocks were cautiously positive on Monday, as investors awaited a flurry of policy announcements during Donald Trump’s second presidency and eyed a rate hike in Japan at the end of the week. European stocks edged lower after an initial tick upward at the open, with the pan-European index down 0.2% and the UK FTSE 100 flat. MSCI’s All-World index was up 0.1%.
The dollar was up more than 8% against the euro since September, but some analysts warned that sellers may step in if the tariff hikes that Trump has flagged start more slowly than expected. Trump has threatened tariffs of up to 10% on global imports and 60% on Chinese goods, plus a 25% import surcharge on Canadian and Mexican products.
China is in focus as the target of the harshest potential trade levies. Investors have cheered better-than-expected Chinese growth data and a phone call between Trump and Chinese President Xi Jinping that left both upbeat. Hong Kong’s Hang Seng index closed up 1.8%.
In commodities, gold hovered at $2,707 an ounce, and US oil futures dipped on expectations that Trump may ease curbs on Russia’s energy sector in return for a truce in Ukraine.
