Trump's Second Term: Markets Brace for Policy Moves

The dollar fell slightly while stocks showed cautious optimism as investors anticipated new policy actions from Donald Trump's second presidency. With an upcoming rate hike in Japan, the global market response was mixed. Key trade negotiations, especially with China, remained a focal point.

The dollar saw a minor decline, and stocks experienced cautious positivity on Monday as investors awaited expected policy announcements during Donald Trump's second term inauguration. A potential rate hike in Japan by the end of the week also caught investors' attention.

Trump, who took the oath at noon Eastern Time, has generated expectations of immediate executive orders. On Sunday, he pledged a revitalized American strength. However, his unpredictability was highlighted by the launch of a digital token on Friday, which initially surged but then fell as traders grew uneasy.

The global financial markets, particularly in Asia, are gearing up to react to these developments, taking into account looming U.S. tariffs and their potential impacts on trade dynamics, especially with China.

(With inputs from agencies.)