Rumors that President-elect Donald Trump may appoint former U.S. Trade Representative Robert Lighthizer to oversee trade policy are moving markets, from the dollar on currency exchanges to tariff-sensitive stocks. Lighthizer was at the center of Trump’s protectionist policies during his first term as president and served as U.S. Trade Representative when Trump launched a trade war against China. The Financial Times reported late on Friday that the news that Lighthizer might publish the article again shocked markets – with the dollar, for example, soaring in a knee-jerk reaction to the headline. .DXY 5D Mountain USD Index over the past five days. “Any clues about Trump’s appointment could move markets,” Deutsche Bank research strategist Jim Reid said in a note. “For example, late on Friday afternoon UK time, the Financial Times reported The dollar rose immediately after Robert Lighthizer was appointed as the new administration’s U.S. Trade Representative. The dollar rose to its highest level in a year last Wednesday after Trump defeated Vice President Kamala Harris in the presidential election. . Trump’s proposed tax cuts and import tariffs are seen as weakening the currencies of some of the United States’ largest trading partners. To be sure, Lighthizer’s appointment has not been confirmed, with media outlets including CNN and Reuters reporting that the Financial Times report was untrue. Bank of America tracks a basket of consumer stocks more exposed to China tariffs, which tumbled on Friday. The basket of stocks has underperformed the S&P 500 for six consecutive weeks. “Given the sensitivity of these stocks to anything related to tariffs, I think there will be more volatility going forward,” Bank of America’s trading desk said in a note to clients. Whether Trump will follow through on his campaign threats will weigh on all It remains to be seen whether imports from China will be subject to tariffs of up to 60%, but any updates in this regard are expected to impact the market.
