Market insight: “America’s golden age begins”

Donald Trump had already set the markets in motion even before he took office. With his inauguration yesterday, Monday, at 18:00 German time, he put his words into action. In his speech, he spoke of a “golden age” for America – the best four years the country will ever experience. By the time of his inauguration, around 200 decrees (laws without the involvement of parliament) were ready to be signed, the majority of which were immediately put into effect. A complete list of these measures would go far beyond the scope of a market report. The focus here will therefore be on a few market-relevant decisions. In the coming days, it can be assumed that the 47th President of the United States will continue to influence the direction of the markets with decisive action.

Punitive tariffs against Mexico and Canada

Declaration of an energy emergency

Donald Trump has declared a national energy emergency to promote domestic energy production. This measure is intended to facilitate the use of oil, gas, uranium, coal and other critical raw materials by significantly accelerating approval procedures, for example for the construction of pipelines. The aim is to significantly reduce energy costs for both consumers and industry. A further decree also allows the resumption of oil drilling in Alaska. This decision could lead to increased oil production in the short and long term, which is likely to put pressure on the oil price. The measures underline Trump’s goal of strengthening the USA’s energy independence and at the same time promoting the competitiveness of domestic industry.

“Eat or die”

“We will settle this with tariffs or they will have to buy our oil and gas,” Donald Trump declared in an unequivocal message to the European Union. His demand: the EU should import more American oil and gas in order to avoid punitive tariffs from the USA. A clear message that underlines Trump’s strategy: boosting the American economy, whether through tariffs or energy exports – the goal remains the same. However, this plan is unlikely to be that easy to implement. Although the USA is the world leader in crude oil production and liquefied natural gas (LNG) exports, its capacity to increase LNG exports is limited. One reason for this is that LNG is largely sold under long-term contracts that limit flexibility. In addition, a leasing ban imposed under the Biden administration effectively blocked the development of new oil and gas deposits in many US coastal waters. Trump’s ambitious plan will therefore not only face economic hurdles, but could also become a balancing act between political and infrastructural realities.

When will Trump make a statement on the crypto market?

Donald Trump had already announced long before his election as US president that he wanted to make the United States the global crypto capital. In this context, he planned to invest some of the US currency reserves in Bitcoin. It was even recently announced that altcoins are also being considered as potential reserve assets. The markets reacted euphorically to these prospects: Cryptocurrencies such as Bitcoin, Ethereum and Ripple recorded a strong rally with significant price gains after Trump’s election. The introduction of a Trump meme coin also fueled hopes of an immediate implementation of a crypto-friendly policy. However, the president has yet to make a concrete statement on his crypto plans. This lack of clarity led to a slight correction yesterday, as investors are apparently waiting for further details on the political plans. Nevertheless, the crypto world remains curious to see if and when Trump’s vision of a new era for digital currencies will become reality.

Source: finanzmarktwelt, investing, tagesschau