January 28, 2025 (Globalinvestorideas.com) Breaking Stock Market News and Commentary) Market commentary from Ruben Ferreira – Head of Portuguese Operations at FlowCommunity.
The U.S. dollar rebounded from previous losses as market participants reacted to new tariff threats from Donald Trump targeting imported computer chips, pharmaceuticals, and steel. The tariffs aim to boost domestic manufacturing, especially in industries linked to military hardware, as part of broader efforts to strengthen U.S. industrial output. Rising concerns over China’s AI advancements, particularly through the startup DeepSeek, have added urgency to these protectionist efforts.
Meanwhile, the risks of seeing a 25% tariff on imports from Mexico and Canada could continue to fuel risk-off sentiment, driving demand for safe-haven assets like the U.S. dollar.
At the same time, traders are closely monitoring monetary policy decisions, which may shape market sentiment in the weeks ahead. The Federal Reserve begins its two-day meeting today, with the interest rate decision expected tomorrow. While no change in rates is anticipated, the focus is on the Fed’s 2025 outlook. A hawkish approach could strengthen the dollar, whereas a dovish tone could weaken the currency. In addition, the Bank of Canada and the European Central Bank are set to announce interest rate decisions later this week, intensifying the global focus on central bank policy.
In the bond market, U.S. Treasury yields edged higher, with the 10-year note yield hovering between 4.5% and 4.6%. As the Fed’s interest rate decision deadline approaches and uncertainty over Trump’s trade policies persists, heightened volatility is expected, which could support US yields.
Disclaimer/Disclosure: GlobalInvestorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by GlobalInvestorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.
Global Investor Ideas is part of the Investorideas.com content umbrella and is owned by Econ Corporate Services Inc.
Learn More about GlobalInvestorideas.com
https://www.youtube.com/shorts/RSbmQY3aqcU