ADDX GO Market Morning Wrap - 14th Jan
Go Wire
January 14, 2025
GoGPT Summarizes Articles
US Market
The U.S. stock market closed with mixed results: the Nasdaq fell by 0.38%, the S&P 500 rose by 0.16%, and the Dow Jones climbed by 0.86%.
Trump Team Considers Gradual Tariff Hikes
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Advisors to President-elect Donald Trump are reportedly discussing a phased approach to increasing tariffs, aiming to strengthen the U.S.’s bargaining position while mitigating inflation risks. The proposal suggests monthly tariff increases of 2% to 5% under the International Emergency Economic Powers Act. This idea is still in early discussions and has not yet been presented to Trump.
Asian Markets
On January 13, Asian markets started the week predominantly in decline as investors recalibrated their expectations for U.S. interest rate cuts. Strong U.S. jobs data from the prior week signaled a robust labor market, leading Goldman Sachs to revise its forecast from three rate cuts to two for 2025.
Japanese markets were closed for a holiday, leading to lighter trading volumes. The lower trading volume further depressed the regional sentiment.
China to Expand Financial Presence in Hong Kong
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At the Asian Financial Forum on January 13, Pan Gongsheng, Governor of the People’s Bank of China, announced plans to adopt more aggressive economic policies in 2025. Key initiatives include boosting Hong Kong’s role as an offshore RMB hub, regularly issuing RMB-denominated bonds, and introducing measures to enhance financial connectivity and settlement efficiency. Pan emphasized Beijing’s commitment to supporting Hong Kong’s development as a global financial center.
Forex
Wall Street Predicts a Stronger Dollar, Potential Euro Depreciation
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Wall Street strategists foresee further appreciation of the U.S. dollar due to a resilient American economy, reduced expectations for Federal Reserve rate cuts, and the potential for additional tariffs under Trump. Analysts from Goldman Sachs, TD Securities, and Deutsche Bank anticipate more upside for the dollar. Monex FX trader Helen Given noted, “We expect the dollar to remain strong. A break above the Bloomberg Dollar Index’s November 2022 peak could occur around Trump’s inauguration or shortly thereafter.”
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