SVET Reports
Tuesday's Markets Update (January 21, 2025)
On Tuesday, equities rallied as worries over Trump's tariffs appeared exaggerated. Apple shares declined due to the worsening outlook for China market. The euro held at a 3-year low amid a slowing economy and anticipated trade restrictions. BTC increased while ETH continued to stall, and SOL remained in recovery mode after a post-Trump-coin-hike crash.
World Markets
The ZEW Indicator of Economic Sentiment for the Euro Area rose in January, exceeding expectations. However, concerns remain regarding Germany's economic growth, rising inflation, and political instability. The indicator of current economic situation improved, while inflation expectations surged. 1Y trend: "Down"(DE)
Gold production in South Africa declined by 11.5% YpY in November 2024, the steepest decline in six months. This contributed to a decline in overall mining production. 1Y trend: "Side"(ZA)
Currencies
The dollar index rose, following Trump's announcement of potential tariffs on Canada and Mexico. Concerns over trade tensions and potential inflationary pressures boosted the dollar. While signs of cooling inflation have increased expectations for Fed rate cuts, the potential for trade-related inflationary pressures is supporting the dollar. The Canadian dollar and Mexican peso declined significantly. 1Y trend: "Up"
The euro traded near $1.03, close to its late 2022 lows, as dollar strength persisted following Trump's inauguration. Trump's announcement of potential tariffs on Mexico and Canada renewed concerns about trade tensions. While Eurozone inflation rose, the ECB is likely to maintain its easing trajectory. Markets anticipate a 25 basis point rate cut at the ECB's upcoming meeting. 1Y trend: "Down, Depreciating"