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The euro is facing significant challenges as poor economic indicators and political uncertainties weigh heavily on the currency, pushing it closer to parity with the dollar. Major asset managers predict this could occur by year-end, as the US economy shows signs of growth, contrasting sharply with Europe's stagnation. The euro's fate appears increasingly tied to developments in the US, particularly with the incoming administration's policies.
Standard Chartered Plc is poised to become the settlement bank for real-time dollar-denominated trades in GIFT City, India's emerging financial hub. The Clearing Corp. of India Ltd. plans to begin testing the new settlement system by January, with a rollout expected by April, aiming to enhance transaction efficiency as foreign interest in Indian markets grows.
Asian markets are bracing for pressure as President-elect Donald Trump plans to impose trade tariffs on Mexico, Canada, and increase levies on China. Analysts predict that Asian currencies, particularly the Korean won and Thai baht, will underperform, while stocks in China, Mexico, and Canada, especially those reliant on US exports, are expected to decline.
Gold prices remained stable after a previous drop, with US gold futures rising 0.3% to $2,625.80. The market is experiencing increased safe-haven demand following President-elect Trump's tariff pledge on imports from Canada, Mexico, and China. Analysts suggest potential turbulence ahead as Trump’s policies come into focus.
Nifty's recent two-day surge raises questions about whether the rally will continue. After a 38-session hiatus, foreign institutional investors have returned as buyers, signaling potential shifts in market dynamics. Investors are keenly watching for further developments.
The UK is preparing for potential trade repercussions from a protectionist stance by Trump, which could lead to tariffs on products like Harleys and Jack Daniel’s. Meanwhile, Kemi Badenoch has been appointed as the first Black woman to lead a major UK political party, aiming to revitalize the Conservative Party. Additionally, the new chancellor's budget plans are set to significantly reshape the British state, while the UK remains cautious about severing ties with Iran amid ongoing global tensions.
Copper and other base metals fell as the dollar strengthened following President-elect Donald Trump's announcement of new tariffs. Trump plans to impose a 10% tariff on Chinese goods and 25% on imports from Mexico and Canada, which contributed to a 0.7% rise in the Bloomberg Dollar Spot Index before it slightly eased. Meanwhile, shares in Asia experienced a decline.
Standard Chartered Plc is poised to become the primary settlement bank for real-time dollar-denominated trades in India's emerging financial hub, as reported by sources familiar with the situation. This development highlights the bank's leading role in facilitating international transactions in the region.
U.S. markets experienced optimism on November 25 as President-elect Trump’s tariff plans led to a dollar rally. He announced a 25% tariff on imports from Mexico and Canada and a 10% tariff on China, citing illegal immigration and drug trade concerns. Additionally, Federal Reserve President Neel Kashkari hinted at a potential rate cut, while discussions for a ceasefire between Hezbollah and Israel progressed, impacting global markets.
The Chinese Embassy in Washington stated that neither the United States nor China would benefit from a trade war. This statement follows U.S. President-elect Donald Trump's announcement of plans to impose an additional 10% tariff on all Chinese imports starting January 20.
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