Global Markets React to Trump's Tariff Pledges

The global equity index dipped as the U.S. dollar rose following President-elect Trump's tariff threats against Canada, Mexico, and China. Despite initial market reactions, key U.S. indices showed resilience. Investor sentiments adjusted, considering the long timeline before policy enactments. Oil and precious metals experienced mixed fluctuations.

On Tuesday, global equity markets experienced a slight decline as the U.S. dollar strengthened. This reaction came after U.S. President-elect Donald Trump pledged significant tariffs on imports from Canada, Mexico, and China, citing concerns over illegal immigration and drug trafficking.

Despite the tariff threats, the S&P 500 and Nasdaq posted gains. Chief strategist Michael O'Rourke highlighted investor sentiments, noting the long lead-up to potential policy enactments allows markets to adjust.

While the peso and Canadian dollar weakened, oil prices rose amid OPEC+ talks. Precious metals showed mixed reactions, with gold experiencing volatile movements due to geopolitical tensions and Trump's trade policy impacts.

(With inputs from agencies.)