Markets react to Trump's return to the podium

Global markets have been volatile since yesterday after the inauguration of Donald Trump as president of the United States, where the dollar rebounded on Tuesday in volatile trading with the return of Donald Trump to the White House.

President Trump did not immediately impose tariffs on Monday as previously promised, but said he was considering imposing 25% tariffs on imports from Canada and Mexico on the first of February due to illegal immigrants in transit to the United States, and the Mexican peso and the Canadian dollar have fallen strongly against the US dollar since then.

The dollar fell yesterday due to the absence of initial aggressive tariffs on imports, as markets expected from Trump, and then partially reversed those declines after news of his plans to impose exorbitant tariffs of 25% on Canada and Mexico on February 1.

The dollar also remains supported by the lower probability of the US Federal Reserve cutting interest rates compared to other major central banks, and any downward corrections to the dollar are considered to be opportunities to strengthen its purchase.

Below we review some of the analysts comments:

Amelie derambury, senior multi-asset manager at Amund, says:

Obviously, the markets will try to predict and analyze which sectors and regions will be targeted by tariffs, so fluctuations in the markets will come from this.

European assets, especially stocks, will be volatile because the news of tariffs will be especially important to Europe.

Mark Havel chief investment officer, UBS Global Wealth Management:

Our basic condition for the US economy is to grow despite tariffs, and we do not believe that tariff measures will be enough to hinder growth in the United States.

We also do not believe that such tariffs would prevent inflation from continuing to fall from its current levels, enabling the Fed to cut interest rates by 50 basis points later this year.

Kyle Roda is a senior market analyst at Capital:

He says that it is a Trump world and we are all living in it, and the markets will have to get used to it a lot, that tariffs mean a stronger US dollar due to higher import prices and weak global growth, and the absence of tariffs means stronger global trade and a stronger global growth background.

Kyung Seung is chief macroeconomic strategist at Societe Generale:

No immediate tariffs have been imposed on China, which provides some relief to the market, President Trump has started imposing tariffs on Canada and Mexico.

The possible delay in imposing tariffs on China may also lead to the Chinese authorities refraining from implementing a final stimulus, and therefore the market's doubts about China's growth recovery may be overshadowed, as insufficient stimulus to support domestic consumption would emphasize the disparity in growth between China and the United States.

Charu Channa, chief investment strategist at Saxo:

The first few hours of the Trump administration confirmed that the policy environment would be dynamic again and that markets should prepare for volatility.

It is clear that the markets celebrated too early with the absence of tariff threats at the beginning of Trump's inauguration speech.

However, the tariffs on Canada and Mexico, which are likely to be approved on the first of February, led the dollar to rise again, and yet the absence of any threats regarding China kept the hopes of negotiations alive there, especially after the phone call between Trump and Xi last week as well.