Categories: Business

Uncertainty Hit World Stock Market at New Year Due to Concerns Over Trump’s Policies

Global stock markets have started 2025 with uncertainty and volatility, primarily due to concerns over incoming U.S. President Donald Trump’s policies and a more hawkish Federal Reserve outlook.

While global shares had closed 2024 with a strong annual gain of nearly 16 percent, they experienced a monthly loss of over 2% in December, with European stocks
easing during the first trading session of 2025 and Chinese stocks ending sharply lower, logging their weakest New Year start since 2016.

READ MORE: Museveni Calls For East African Common Market For Regional Wealth Creation

The market uncertainty is further amplified by potential shifts in economic strategies, with China’s President Xi announcing plans for more proactive policies to boost growth, while concerns mount over Trump’s proposed 60% tariffs on Chinese imports.

Analysts, including Bruno Schneller of Erlen Capital Management and Yingxi Wang of AXA Investment Managers, warn that Trump’s return could amplify external risks and potentially create a debt deflation trap if stimulus measures are delayed or misdirected, particularly impacting China’s emerging market economy.

Branislav Moses Opudo

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