Donald Trump will be sworn in and officially move into the White House

After a few weeks of hesitation around the beginning of the new year, the equity bulls finally returned to the market last week on the back of a set of slower-than-expected inflation figures from both the US and the UK, and a set of stronger-than-expected US big bank results. The global bond yields retreated in the developed world from a peak reached earlier last week and let the equities take a breather.

In FX and commodities, the US dollar retreated on the back of soft CPI and softening Federal Reserve (Fed) expectations, leading to a slow down of the selloff in the EURUSD and Cable. US crude traded past the $80pb but couldn’t extend gains above this level.

Today, Donald Trump will be sworn in and officially move into the White House. A good part of Trump trade has already happened – the small and mid-caps rallied, energy and financials outperformed and cryptocurrencies touched the sky. Therefore, the first week under Trump may not bring a lot of surprises... (but it may as well!) His brand-new cryptocurrency – launched on the Solana blockchain - gained up to 600% in three days reaching a $15bn capitalization before easing – a little bit – also sending Solana to a fresh record high and the CSI index opens the week on a positive note after a ‘good’ phone call between Trump and Xi.

Elsewhere, big names including Netflix, P&G and American Express will go to the earnings confessional this week and the S&P500 companies are expected to print near 12% earnings growth this season.