Dollar rebounds and stocks climb with all eyes on Trump 2.0 | U.S. & World [Video]

By Harry Robertson and Koh Gui Qing

NEW YORK/LONDON (Reuters) -World stocks rose on Tuesday and the dollar gained after plunging the previous day as Donald Trump’s return to the White House brought mixed messaging on tariffs and highlighted markets’ twitching about trade policy.

The Canadian dollar and Mexican peso bore the brunt of the market swings on Tuesday and Monday, after Trump said he was mulling imposing 25% tariffs on the neighboring countries as soon as Feb. 1.

Still, some investors were relieved that Trump did not announce a more comprehensive sweep of tariffs at the start of his second presidency, and that supported a pull-back in the 10-year Treasury bond yield.

“Markets are still absorbing the flurry of executive orders released by Trump, but there is still a sense of relief in general,” analysts at TD Securities said in a note.

The MSCI index for world stocks rose 0.34%, and U.S. shares were mostly higher. …