President Trump’s Inauguration and Executive Orders: What Investors Need to Know

As the world watches President Trump’s inauguration today, investors are keeping a close eye on the large number of executive orders he is expected to sign. This uncertainty, combined with a US holiday, may lead some to take a cautious approach in the markets.

Energy Market Update: Speculators Bullish on Brent

Despite a slight pullback in prices last week, ICE Brent settled 1.3% higher and remained above US$80/bbl. Speculators increased their net long position in ICE Brent, driven by supply concerns following US sanctions against the Russian energy industry. Short-term supply risks in the US may also impact oil and gas production due to freezing weather conditions.

Chinese refineries processed more crude oil in December, but full-year refinery activity fell, reflecting weaker domestic demand.

Metal Markets: Aluminium Rallies on China Growth

LME ended the week strong, boosted by signs of economic recovery in China. China’s economy expanded 5% in 2024, meeting government targets. Monthly primary aluminium production in China rose, while steel production fell due to weakness in the property market.

Weekly data from the Shanghai Futures Exchange showed mixed inventories for base metals, with aluminium stocks at their lowest since February 2024.

Agricultural Market Update: India to Allow Sugar Exports

Reports suggest India will allow the export of 1m tonnes of sugar, potentially impacting global prices. Speculators sold sugar aggressively, leading to a net short position for the first time since August.

Analysis: President Trump’s inauguration and executive orders, along with supply concerns in the energy market and China’s economic growth, are key factors to watch for investors. The impact of freezing weather on US production, Chinese refinery activity, and India’s sugar exports will also influence market dynamics. It’s important for investors to stay informed and consider these factors when making financial decisions.