With the U.S. stock market set to close on Monday in honor of Martin Luther King Jr. Day, equity traders won’t get the chance to respond immediately to President-elect Donald Trump’s inaugural address. Likewise, the bond market will take a pause.
However, global currency and commodity markets will remain active, providing a platform for traders to react in real time to Trump’s words. Analysts at Macquarie believe that depending on the themes Trump highlights, his speech could quickly influence multiple markets.
“We’re mindful that some topics Trump touches on could shift markets. While it’s unlikely for detailed policy outlines to emerge on Monday, since those might limit Trump’s negotiation flexibility with Congress and international partners,” mentioned Thierry Wizman, Macquarie’s global currency and rates strategist.
Wizman remarked that the issues discussed and the tone employed might hint at short-term priorities, which traders could use to guide market movements.
Key subjects Trump might address, according to Wizman, include deficits and defense spending, immigration, energy, and the Russia-Ukraine conflict—all potent catalysts for market shifts.
“Trump’s inaugural address has the potential to sway yields, currency values, and even commodity prices. This is particularly true if the topics he emphasizes are quickly acted upon through executive orders in the early stages of his administration,” Wizman concluded.
