Following Donald Trump's election, US stocks hit record highs, and the dollar reached a two-year peak, while non-US assets declined. An MSCI index of developing-market currencies lost over 1%, and European stocks and the euro fell. Trump's America First cabinet appointments amplify fears of trade tensions, which could drive inflation and limit central banks' options. Emerging markets, such as China and Mexico, viewed as vulnerable to Trump’s policies, saw significant impacts. Asian stocks dipped, with South Korean shares approaching a one-year low due to foreign selloffs in trade-sensitive firms.
