Investors are gearing up for Trump 2.0

This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

Stabilizing the yuan a priority for Beijing
The offshore Chinese yuan weakened more than 3% against the US dollar, present a headache for Beijingwhat does he want avoid currency volatility even as a cheaper yuan boosts exports. On Monday, China dropped its benchmark lending rates unchangedsuggesting that keeping the yuan stable is the priority over boosting the domestic economy.

It slows down Chinese investment in the United States
Chinese investments in the United States have slowed dramatically in recent years, according to the latest Data from the American Enterprise Institute. Only $1.66 billion will flow into the United States in 2023, down sharply from $46.86 billion in 2017. unlikely to take over during the second term of US President-elect Donald Trump because of “an ideological mismatch,” analysts said.

First winning week for US stocks in 2025
Markets in the United States rose on Friday to end the week higher for the first time in 2025. Asia-Pacific markets went up on Monday. During the trading day, Hong Kong Hang Seng Index it jumped to its highest level since December 31. Mainland China’s CSI 300 added about 0.5% as Beijing kept its lending rates unchanged.

Clock restarted for TikTok
TikTok said in a statement about X what is restoration of service in the United States after Trump wrote on his social media app Social truth he will “issue an executive order on Monday” to delay it the ban on TikTok. On Saturday, Perplexity AI presented an offer to TikTok company ByteDance for create a new merged entity combining Perplexity, TikTok US and new capital partners, CNBC has learned.

Trillions in a decade, Oxfam predicts
U combined wealth of billionaires has grown to $15 trillion from $13 trillion in 2024, according to Oxfam on Sunday. It is the second biggest annual increase in billionaire wealth since Oxfam records began. With the pace of wealth accumulation by the rich accelerating, the charity predicts there will be at least five trillionaires within a decade.

TSMC confident of continued funding under Trump
Taiwan Semiconductor Manufacturing Co expect to continue to receive the $6.6 billion was promised under the Biden administration CHIPS and Science Act even after Trump took office, TSMC Chief Financial Officer Wendell Huang he told CNBC in an exclusive interview. On the campaign trail, Trump criticized the CHIPS act and accused Taiwan of stealing the chip business from the United States

[PRO] Trump to determine the direction of the markets
Trump’s inauguration will be later Monday. Investors want to keep an eye what executive orders will trump sign starting from the first day of his presidency, especially regarding tariffs and corporate policies. Those orders could chart the direction of the stock for much longer than just the near term.

U S&P 500 broke above the shiny 6,000 level after Trump’s election victory, but has largely erased all of its gains and returned to its pre-election level in recent weeks. As Trump prepares to enter the White House, however, it appears that investors are preparing to play the market based on his agenda again.

The stock ended last week on a positive note, its first weekly gain for the year. For the week, the S&P 500 advanced 2.9% and the Dow Jones Industrial Average jumped 3.7%, its best weekly performance since the week of the US presidential election in November. U Nasdaq Composite added 2.5%, its best week since the beginning of December.

Banks contributed largely to the bump in the index, as better-than-expected earnings reports from big banks lifted their shares higher. Actions of Goldman Sachs rose around 12% on the week and JPMorgan Chase rose 8% in the same period. Overall, the financial sector rallied more than 6% last week, outperforming the S&P.

Trump’s tenure as president could provide more momentum ahead for bank stocks. Rising business and consumer confidence, an extension of tax cuts and deregulation of the financial industry are potential drivers of the sector, according to Chris Senyek, chief investment strategist at Wolfe Research.

“We still see Financials as the biggest sectoral winner under the Trump administration,” Senyek wrote in a note on Friday.

That said, apart from the anticipation of Trump sitting in the Oval Office, back-to-back muted inflation readings for December also boosted animal spirits in the markets: All market sectors ended the week in the green.

Better-than-expected economic data helped “revive the gold rush narrative for stocks, and likely prompted some risk-on.” Barclays strategist Emmanuel Cau wrote in a note on Friday.

Typically, any change involves increased risks. That’s true with Trump 2.0 — but as the number “two” suggests, a change we’ve seen before could mitigate some of that uncertainty.

— CNBC’s Alex Harring, Hakyung Kim and Sarah Min contributed to this report.