Investors are concerned about immigration policy and geopolitical tensions in the incoming administration of Donald Trump. According to analysts from Barclays, financial markets are expected to be volatile as the details of the policies to be implemented are absorbed. Executive orders are anticipated to be issued on issues such as border policy, tariffs, energy, and deregulation, leading investors to quickly interpret these measures.
Before Trump's inauguration, China's commercial banks will unveil their short- and long-term lending rates. Rates are expected to remain unchanged due to pressure on the yuan and weakness in domestic demand in the country. The Chinese yuan, in turn, has lost more than 3 percent against the dollar in recent days, primarily due to tariff risks and the gap between U.S. and Chinese bond yields.
Regarding Asian stocks, an increase is expected in early trading on Monday, following the positive conversation between Trump and Xi Jinping. This situation has generated optimism in the markets after the news that TikTok will restore its service in the United States, temporarily suspending the search for a buyer. Analysts point out that Asian indices could open strongly following Chinese growth data, which was stronger than expected.
On the other hand, the Mexican peso has remained stable hours before Trump's swearing-in ceremony, trading at 20.77 units per dollar. Although it experienced a slight decline last week, the peso has been more resilient than other currencies against the dollar since the U.S. elections. Overall, greater volatility in financial markets is expected in the coming days as the new administration defines its priorities on issues such as tax reduction and tariffs.
