ETM Analytics and TreasuryONE delve into the global market dynamics as Donald Trump prepares for his second term as President of the United States. With his inauguration scheduled for today, market participants are eagerly awaiting the first wave of executive orders, expected to include sweeping tariff measures and economic reforms.
Highlights from this week’s discussion include:
👉 US Inflation & Interest Rates: Recent data shows inflation hovering near 2.9%, with robust job market figures delaying expected interest rate cuts from the Federal Reserve.
👉 Trump’s Tariff Strategy: Anticipation builds over potential tariffs targeting key trading partners like China and the European Union, raising concerns about a second round of inflationary pressures.
👉 The Rand’s Performance: After a challenging start to the year, the ZAR shows signs of stabilisation, trading around R18.70 to the dollar. Analysts predict further volatility as global markets react to Trump’s economic policies.
👉 Geopolitical Impacts: World leaders and major corporations are taking Trump’s return seriously, signalling a shift in global diplomacy and trade relations.