US stocks rallied on Tuesday, while the dollar gained and oil swung, as traders were hopeful that Donald Trump's early actions as President might signal a less aggressive trade policy.
Investors were fearful that tariffs would be part of the President's day-one agenda. Instead he directed several departments to investigate the US annual trade deficits in goods "and recommend appropriate measures, such as a global supplemental tariff or other policies, to remedy such deficits".
The blue-chip Dow Jones Industrial Average climbed 1.24 per cent - or 537.98 - when trading closed at 2am UAE time. The S&P 500 rose 0.88 per cent while the Nasdaq Composite climbed by 0.64 per cent.
Asian stock indexes trimmed early gains, as the Shanghai Composite Index was down 0.05 per cent when trading closed. Japan’s Nikkei 225 Index moved 0.32 per cent higher while Hong Kong's Hang Seng rose 0.91 per cent. Australia’s S&P/ASX 200 climbed 0.66 per cent as India’s BSE Sensex stock gauge declined 1.60 per cent.
Meanwhile, the FTSE 100 was trading marginally higher, CAC 40 Index futures in France rose 0.39 per cent and DAX 30 Index futures in Germany advanced 0.12 per cent.
Mr Trump refrained from imposing higher tariffs upon immediately on returning to office, but previewed possible actions to come. Among them was a threat to implement a 100 per cent tariff on Brics nations if they continue de-dollarisation efforts. He also told reporters he is considering a 25 per cent tariff on goods from Mexico and Canada as soon as February 1.
“Both countries have said that they would retaliate in the event of tariffs, risking a trade war between the members of the US-Mexico-Canada Agreement," Daniel Richards, Emirates NBD's Mena economist said on Tuesday
Mr Trump also said he could impose a 100 per cent tariff on Chinese goods if Beijing does not approve a potential sale of TikTok. But when asked about the prospect of universal tariffs, Mr Trump responded, "We're not ready for that yet".
Investors had remained on tenterhooks in the lead-up to Mr Trump’s second White House stint, as they waited for promised executive orders to enforce the President's “America First” agenda, which could affect global trade flows and the balance in energy markets.
On Monday, Mr Trump declared a “national energy emergency” and withdrew the US from the Paris Climate Agreement as he moved to reverse former president Joe Biden's climate legacy.
The energy emergency declaration was signed to increase domestic oil and gas production in a bid to lower costs for consumers.
“We will be a rich nation again, and it is that liquid gold under our feet that will help to do it,” Mr Trump said during his inaugural address.
Oil swung between gains and losses on Tuesday morning, with Brent, the benchmark for two thirds of the world’s oil, trading flat at $80.06 a barrel, while West Texas Intermediate, the gauge that tracks US crude, was down 0.67 per cent at $77.36 a barrel.
“Nearly all the measures [so far by Trump Administration] that are directly or indirectly material for the oil markets are slow-burn and may prompt a knee-jerk reaction in crude futures, but do not clearly translate into an immediate bullish or bearish sentiment,” Vanda Insights, a Singapore-based global energy market intelligence provider, said in its note to investors.
The dollar on Tuesday also rebounded in Asia trade amid bets that expansionary policies of Mr Trump and his plans to impose tariffs would force the Federal Reserve to halt further interest rate cuts.
Bloomberg’s dollar gauge rose as much as 0.7 per cent in Asia after slumping in New York trade on Monday when Mr Trump did not immediately imposed sweeping tariffs on Canada and Mexico. Currencies of the two nations fell more than 1 per cent against the greenback before paring the move, according to Bloomberg data.
Company%C2%A0profile
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The biog
Nickname: Mama Nadia to children, staff and parents
Education: Bachelors degree in English Literature with Social work from UAE University
As a child: Kept sweets on the window sill for workers, set aside money to pay for education of needy families
Holidays: Spends most of her days off at Senses often with her family who describe the centre as part of their life too
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
'Jurassic%20World%20Dominion'
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UAE currency: the story behind the money in your pockets
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
TOP 5 DRIVERS 2019
1 Lewis Hamilton, Mercedes, 10 wins 387 points
2 Valtteri Bottas, Mercedes, 4 wins, 314 points
3 Max Verstappen, Red Bull, 3 wins, 260 points
4 Charles Leclerc, Ferrari, 2 wins, 249 points
5 Sebastian Vettel, Ferrari, 1 win, 230 points
Analysis
Members of Syria's Alawite minority community face threat in their heartland after one of the deadliest days in country’s recent history. Read more
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
