Market Information Tuesday 21 January 2025

Asian markets rose after Donald Trump’s presidential inauguration, reflecting investor anticipation of the new U.S. administration’s policies. Hong Kong’s Hang Seng index reached its highest since December 31, driven by consumer cyclical and healthcare firms, closing up 1.76%. Mainland China’s CSI 300 gained 0.45%, with the People’s Bank of China maintaining its 1-year loan prime rate at 3.1% and the 5-year LPR at 3.6%. The offshore yuan strengthened to 7.3345 per U.S. dollar, amidst differing monetary policies between the U.S. and China. Japan’s Nikkei 225 rose 1.17%, Australia’s S&P/ASX 200 advanced 0.45%, while South Korea’s Kospi slipped slightly by 0.14%.

U.S. stock market futures rose as Donald Trump assumed his second presidency, with investors optimistic about his economic agenda, particularly in the banking and energy sectors. The Dow, S&P 500, and Nasdaq-100 futures each saw gains between 0.4% to 0.6%. On a holiday-closed trading day, anticipations of deregulation and new economic policies buoyed investor sentiment. Planned executive actions include investigating trade practices, energy deregulation, and addressing immigration restrictions.

Donald Trump’s return to the White House is seen as a boon for Big Oil, with plans to deregulate and boost fossil fuel production. The clean energy sector, particularly wind power, faces potential setbacks as Trump aims to cut support and dismantle existing policies. Despite the upbeat sentiment in the oil industry, major increases in production are unlikely due to current supply levels. The oil sector outlines policy desires under Trump, though concerns about tariffs remain. Wind energy faces regulatory challenges, but growth is still anticipated. Both oil and clean energy industries want certain aspects of Biden’s climate law preserved. Meanwhile, climate experts warn this political shift could hinder global emission reduction efforts.

The 6M Euribor decreased with 3 basis points to 2.64% compared to previous business day. The 10Y Swap is unchanged at 2.48% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.