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U.S. equity futures moved higher in early Tuesday trading, but investors around the world remained braced for near-term volatility as they absorbed a torrent of first-day declarations on trade, energy and immigration policies from President Donald Trump.
Trump, who was sworn in as the 47th U.S. President yesterday in Washington, immediately declared a national emergency that he said would allow for accelerated oil and gas drilling while revoking a former Executive Order from President Joe Biden that capped U.S. exports.Â
On tariffs, a key plank in both his reelection campaign and his inaugural address, Trump first declined to introduce “day one” levies on imported goods, but quickly added that he could impose them on both Canada and Mexico as early as Feb. 1.
China would remain a focus of study, he said, as would the issue of inflation, which he incorrectly described as running at “record highs’, through a direct order to his cabinet to reduce prices.Â
“There was a suggestion of a possible deal with China involving the sale of a stake in TikTok, while Europeans were told they needed to buy more oil and gas to avoid tariffs,” said Lindsay James, investment strategist at London-based Quilter Investors.Â
“With Europe already scrambling for LNG supplies in a tight market, leaders are likely to make warm noises in response to this demand, but whether additional supply is available remains debatable,” he added. “Either way, this President is set to be a force to be reckoned with and is already rewriting the rules of power for an advanced economy.”
The collective actions whipsawed markets in overnight trading, with the U.S. dollar first falling sharply and then recovering, while global stocks moved in and out of positive territory heading into the start of trading on Wall Street.Â
Related: Inflation report tames major S&P 500 threat
The U.S. dollar index was last marked 0.6% lower against a basket of global currencies at 108.679, while the Canadian dollar fell to a fresh five-year low of 1.4515 following Trump’s reference to a 25% levy on imported goods.
Benchmark 10-year Treasury note yields, meanwhile, were marked 4 basis points lower from Friday’s close at 4.571% while 2-year notes were trading at 4.259%.
In energy markets, crude oil prices slipped lower in overnight trading, with Brent contracts for March delivery falling 94 cents to $79.23 per barrel and WTI contracts for February down 80 cents to $75.75 per barrel.
Stock futures, meanwhile, suggest a solid start to the trading day, with futures linked to the S&P 500 priced for an opening bell gain of around 24 points and those tied to the Dow Jones Industrial Average priced for a 152 point advance.
The tech-focused Nasdaq, meanwhile, is called 105 points higher with Intel (INTC) , Nvidia (NVDA)  and Tesla (TSLA)  active in premarket trading.Â
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In overseas markets, Europe’s Stoxx 600 nudged 0.22% higher in early Frankfurt trading, although automaker stocks were in the red after President Trump revoked an Executive Order that aimed to have 50% of cars sold in the U.S. electric by 2030. Britain’s FTSE 100, meanwhile, was marked 0.07% higher in London.
Overnight in Asia, Japan’s Nikkei 225 closed 0.32% higher in Tokyo while modest gains for China stocks, tied to a lack of definitive remarks on tariffs in Trump’s inauguration address, helped the regional MSCI ex-Japan benchmark to a 0.03% gain.
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