As the calendar day ends, the world might be keeping themselves awake due to anxiety as the new US president takes office. The eve dinner address has already hinted at the level of preparedness this time. There was mention of almost 100 executive orders that will be approved on the first day itself.
From the geopolitical standpoint, there will be a Quad FM meeting as soon as the legal appointment is made. China has sent Vice President Han to get first feelers of the road ahead. President Trump is eager to talk with President Putin as soon as possible.
The week is likely to witness lots more of these news and actions that trigger speculations as well. The major focus will be the first 100 days. Given that the past term ended with covid breakout, there would certainly be a focus on doing more in less time as lessons learnt would help.
Financial markets would be anxious as well because the dollar index along with bond yields and oil are at recent highs. Any policy actions relating to them would create big moves on either side. Especially debt as a technical default scenario starts to unfold from Tuesday as debt issuance stops.
These moves will create higher uncertainty but would it result in higher volatility over the period, that is yet to be known. Currently, equity markets have been lower due to the anxiety but if the actions are positive so will the index move at least while the euphoria and hope remain.
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