Trade, tariffs, energy - markets react to Trump's return to office

SINGAPORE/LONDON/NEW YORK (Reuters) -Global markets were volatile portion the dollar rebounded connected Tuesday successful choppy trading arsenic Donald Trump returned to the White House.

President Trump did not instantly enforce tariffs connected Monday arsenic antecedently promised, but said helium was reasoning astir imposing 25% duties connected imports from Canada and Mexico connected Feb. 1 implicit amerciable immigrants and fentanyl crossing into the U.S.

While the Mexican peso and Canadian dollar fell against the greenback, European shares dipped successful aboriginal commercialized and U.S. banal futures were firmer.

Here are immoderate comments from investors and analysts:

WALTER TODD, CHIEF INVESTMENT OFFICER, GREENWOOD CAPITAL, GREENWOOD, SOUTH CAROLINA

"If there's 1 benignant of 'surprise,' it was the deficiency of specificity oregon immoderate benignant of specificity connected tariffs."

"I deliberation determination was an anticipation that helium was conscionable going to bash an enforcement bid and deed it hard and helium didn't. And truthful you're seeing rates down, you're seeing the dollar down, I deliberation arsenic a relation of that."

JASON DRAHO, HEAD OF ASSET ALLOCATION AMERICAS, UBS GLOBAL WEALTH MANAGEMENT (EMAILED COMMENTS)

"(Trump) took disconnected the Day One announcement of caller tariffs and alternatively issued a memorandum of knowing directing national agencies to survey commercialized policies. It's lone the archetypal day, but that determination supports our presumption that Trump 2.0 policies volition yet favour DOGE implicit MAGA economical ideologies, which means that the nett effect of the policies should beryllium affirmative for the proviso broadside of the economy."

MARK HAEFELE, CHIEF INVESTMENT OFFICER, UBS GLOBAL WEALTH MANAGEMENT

"Our basal lawsuit for the U.S. system is for 'growth contempt tariffs.' While we volition beryllium intimately monitoring for risks, we bash not judge that the tariff measures outlined successful our basal lawsuit would beryllium capable to derail U.S. growth. Nor bash we judge that specified tariffs would preclude ostentation continuing to autumn from existent levels, enabling the Fed to chopped rates by 50 bps aboriginal this year."

AMELIE DERAMBURE, SENIOR MULTI-ASSET MANAGER, AMUNDI

"Markets volition intelligibly effort to expect and dissect which sectors and areas volition beryllium targeted by tariffs truthful the volatility connected markets volition travel from that."

"European assets, particularly equities, volition beryllium volatile due to the fact that tariff quality wily beryllium particularly important for Europe."

JIM REID, GLOBAL HEAD OF MACRO STRATEGY, DEUTSCHE BANK, LONDON

"A deficiency of contiguous moves connected tariffs supported the marketplace temper yesterday, but this has partially reversed overnight arsenic precocious successful the time Trump renewed an contiguous menace of 25% tariffs connected Canada and Mexico, which could beryllium announced arsenic soon arsenic February 1st."

KYLE RODDA, SENIOR MARKETS ANALYST, CAPITAL.COM, MELBOURNE

"It's Trump's satellite and we are each conscionable surviving successful it - and the markets are going to person to get utilized to that again. I deliberation the terms enactment successful currencies tells you a clearer communicative astir commercialized warfare risks and the signals are beauteous evident - tariffs mean a stronger U.S. dollar owed to higher import prices and weaker planetary growth, nary tariffs means stronger planetary commercialized and a much robust planetary maturation backdrop."

"Just similar the archetypal Trump administration, the markets are highly delicate to header risk, particularly arsenic it relates to commercialized wars."

CHARLES WANG, CHAIRMAN OF SHENZHEN DRAGON PACIFIC CAPITAL MANAGEMENT CO, SHENZHEN:

"You don't expect Trump's inauguration to trigger a large rally, arsenic it's unrealistic for Sino-U.S. ties to abruptly reverse … and you don't work excessively overmuch into the words of Trump, who is precise fickle."

"I deliberation Trump is present much pragmatic toward China."

KIYONG SEONG, LEAD ASIA MACRO STRATEGIST, SOCIETE GENERALE, HONG KONG:

"While determination was nary contiguous tariff imposed connected China, providing immoderate alleviation to the market, President Trump has initiated tariffs connected Canada and Mexico. It is improbable that helium volition change his program regarding tariffs connected China."

"A imaginable hold successful the imposition of tariffs connected China could besides pb Chinese authorities to abstain from implementing a definitive stimulus. In specified a scenario, renewed marketplace skepticism astir China's maturation betterment whitethorn overshadow the tariff narrative, arsenic an inadequate stimulus to bolster home depletion would underscore the maturation disparity betwixt China and the U.S."

SHOKI OMORI, CHIEF GLOBAL DESK STRATEGIST, MIZUHO SECURITIES, TOKYO:

"Twenty 5 percent looks precocious arsenic a starter, and markets reacted quickly, particularly successful FX. I deliberation marketplace participants thought Trump would commencement with China, with accidental a 10%-20% tariff connected goods but gradual increase."

" (dollar/Chinese yuan) cheapening is temporary, I uncertainty it volition continue. USDCNH is acceptable to spell little with the Trump medication coming up with tariffs."

CHARU CHANANA, CHIEF INVESTMENT STRATEGIST, SAXO, SINGAPORE

"The archetypal fewer hours of Trump medication has underscored that argumentation situation volition beryllium dynamic erstwhile again and markets should brace for volatility. Clearly, the markets celebrated excessively soon with tariff threats missing astatine the outset successful Trump’s inaugural speech."

"However, the respite was short-lived and latest announcement connected Canada and Mexico tariffs apt to beryllium enacted Feb 1 reaffirmed that the tariff menace was lone delayed and not averted. Still, the lack of immoderate threats connected China has kept the hopes of a dialog live there, particularly aft the Trump-Xi telephone telephone past week arsenic well."

ANDREW SWAN, PORTFOLIO MANAGER, MAN GLG. SYDNEY

"I'll accidental 1 affirmative astonishment we whitethorn spot this twelvemonth is really immoderate benignant of solution betwixt U.S. and China from an economical constituent of view, not a strategical constituent of view. At slightest an economical benignant of woody to beryllium done truthful the hazard is really little tariffs. That volition beryllium highly affirmative for Asia."

VIS NAYAR, CHIEF INVESTMENT OFFICER, EASTSPRING INVESTMENTS, SINGAPORE:

"Tariffs are needfully an overhang. I would conscionable accidental that we simply don't know, what we had was unit connected the currency and unit connected markets successful the lead-up to yesterday. So helium (Trump) didn't denote thing (on China), which is people a small spot amended than we mightiness person expected. I deliberation we should expect volatility."

"But determination is anticipation that determination is immoderate pragmatism. We person to presume that he's not going to bash thing that conscionable brings up U.S. ostentation without paying attraction to that."