Emerging Markets Seek Stability Amid Trump Presidency Uncertainty

The first week of President Donald Trump's new term has been marked by a flurry of activity, including the signing of 25 Executive Orders that impact various sectors such as climate policy, immigration, and federal work regulations. Notably, Trump's Stargate initiative, a collaboration with SoftBank, Oracle, and OpenAI, aims to invest $100 billion in early-stage AI, signaling a strategic push for technological leadership amid rising competition from China. Meanwhile, emerging market investors are seeking refuge in frontier markets, which are perceived as less vulnerable to Trump's trade policies, as countries like Serbia and Ghana demonstrate promising economic growth. However, there are concerns about the unpredictability of Trump's administration, particularly regarding its approach to tariffs and interventions in the energy sector, where he has halted investments in green energy projects. The impact of Trump's presidency is also evident in the stock market, with companies like Tesla, Palantir, and Robinhood experiencing significant gains post-election, although questions remain about the sustainability of these increases. Overall, the markets are navigating a complex landscape influenced by Trump's policies and a shifting global economic environment.