Upon taking the oath of office, President Trump immediately enacted a sweeping series of executive orders that marked a distinct transition from previous U.S. policies. In a bold move to advance his "America First" agenda, he nullified 78 Biden-era directives. The administration had also implemented a temporary freeze on new regulations while instituting a federal hiring pause, aimed at optimising government efficiency and requiring federal employees to return to in-person work full-time. Internationally, Trump took decisive steps to withdraw American participation from both the Paris Climate Agreement and the World Health Organisation, citing the need to strengthen national sovereignty and unfair contribution volume compared to other constituents. The executive actions extend to several other key areas, introducing measures to combat rising costs of living, enhance free speech protections, and strengthen border policies. These comprehensive changes reflect a broad strategy to reshape American policy, with particular emphasis on achieving energy independence and bolstering national security.
EQUITY
US stocks started the week on Tuesday with Trump's first day back in office ending without the harsh trade policies many had feared. The Dow ended higher with GM up 5.7% as Goldman Sachs lowered its odds of universal tariffs. A polar vortex pushed utility stocks higher, though energy companies fell after Trump declared an energy emergency. Small companies and industrial stocks led broad market gains, even as Apple dropped 3.2% on analyst downgrades. $500 billion pledged toward the Stargate program is expecting more AI hype to come.
GOLD
Gold prices pressed higher as the dollar weakened and U.S. President Donald Trump deferred imposing tariffs on Canada and Mexico until February 1, raising risk around trade policies. The dollar's decline pushes gold prices to an 11-week high, though concerns over potential inflationary effects of Trump's policies could pressure the Federal Reserve to maintain higher interest rates.
OIL
Oil prices continue declining lower this week as markets reacted to President Trump’s plans for a 25% tariff on Canadian and Mexican oil imports starting February 1, raising concerns over counter-trade measures, especially on U.S. energy. Even with Trump’s push to boost domestic production through a national energy emergency and eased regulations, a hit on supply chain could take longer to recover. A winter storm also cut North Dakota’s output by up to 160,000 barrels per day, though Texas operations saw minimal disruptions.
CURRENCY
The dollar took a hit after President Trump's first day in office brought milder tariff talk than expected, with markets breathing easier as he suggested just 10% duties on Chinese goods rather than the steep 60% he'd mentioned during his campaign. Money flowing out of the safe-haven dollar picked up steam as Trump held back from slapping immediate tariffs on Asian and European trading partners, while signs of a more measured approach to trade policy helped calm earlier fears about inflation heating up.
