European stocks are only up; Trump’s inauguration is focused on by Investing.com

Investing.com – European markets edged higher on Monday, with activity likely to moderate ahead of the inauguration of US President-elect Donald Trump later in the session.

At 03:05 ET (08:05 GMT), Germany was up 0.1%, France was up 0.3%, and the UK traded up 0.1%.

Trump’s inauguration looms large

The main topic on Monday will be the inauguration of Donald Trump later on Monday as the 47th president of the United States, with trading patterns and prices that may be affected, especially when the American markets are closed for Martin Luther King Jnr. Sun.

This will be his second term in office, and most of the funds rallied after his victory in the November election, as investors bet on the repeal and reduction of the law. tax.

There is also a sense of uncertainty after Bloomberg reported that Trump is preparing to declare a national emergency to give him new powers to carry out his agenda.

Trump said he would sign up to 100 executive orders within hours of taking office and, at a rally on Sunday, repeated promises to deport immigrants, loosen regulations and free up resources. power.

Investors are also wary that Trump will target higher trade tariffs against China and other major economies, including the European Union.

Back in Europe, the World Economic Forum begins in Davos, Switzerland, this week, as political and business leaders meet to discuss a range of topics, including how to increase economic growth.

Trump is set to address the summit via video link on Wednesday, while other world leaders are due to attend, including European Central Bank President Christine Lagarde, European Commission President Ursula von der Leyen, UK Chancellor Rachel Reeves and Chinese Vice Premier Ding Xuexiang.

German PPI below expectations

rose less than expected in December, rising 0.8% on the year, below the 1.1% increase expected.

It has cut interest rates four times since June and is expected to continue to do so for the next six months, as it sees eurozone inflation falling from double digits by the end of 2022 to just above the 2% it planned.

The People’s Bank of China left its rate unchanged on Monday, a move widely expected by markets, with both rates still at record lows.

Beijing may be keeping its powder dry in anticipation of more clarity on Trump’s plans for trade tariffs.

Limited income reports

In business news, there is little profit from the big companies to dig in on Monday in Europe.

The reporting period began last week on Wall Street, with major banks reporting higher profits, fueled by a flurry of deals and strong equity market activity that boosted corporate income.

The insults slide down

Oil prices fell to a low on Monday, as traders risked falling off the table ahead of Donald Trump’s inauguration.

At 03:05 ET, US crude futures (WTI) were down 0.1% at $77.33 a barrel, while the contract was down 0.1% at $80.68 a barrel.

Trump is set to take the reins later Monday, and is expected to make a series of policy announcements immediately. These could include the reduction of sanctions on Russia’s energy sector in exchange for an agreement to end the conflict in Ukraine.

Oil is up 10% so far this month, amid concerns about the impact of further Western sanctions on Russia’s impunity.