European stock exchanges are experiencing positive performances as economists and investors closely watch the developments surrounding former U.S. President Donald Trump’s approach to international trade. While Trump has not yet signed any executive orders imposing new tariffs, he has initiated inquiries into potential trade imbalances by directing the Treasury, Commerce, and National Security departments. The market remains hopeful that caution will prevail in any forthcoming U.S. trade measures.
In a speech at the World Economic Forum in Davos, ECB President Christine Lagarde emphasized that blanket tariffs rarely yield the intended outcomes. “We must be ready to decide how to respond,” Lagarde stated, while noting that potential inflation in the U.S. would primarily concern American interests.
Amidst these discussions, Trump has announced the ambitious “Stargate” infrastructure project, targeting investments of over $500 billion in artificial intelligence. SoftBank, a key partner in this plan, saw its shares rise significantly, gaining over 10% on the Nikkei index.
Currency and Commodity Markets Update
On the currency exchange front, the euro has strengthened slightly to $1.042, up from $1.0417 the previous day. Oil prices remain steady, with WTI crude hovering just below $76 per barrel and Brent crude above $79. Meanwhile, gas prices are nearing €50 per megawatt-hour on the TTF market.
In the cryptocurrency sphere, Bitcoin has surged past $105,000. This increase follows Trump’s announcement of a task force dedicated to formulating comprehensive regulations for crypto assets, a move that has been well-received by the crypto market.