The new president of the USA is Donald Trump. AFP File Photo

Global stock markets diverged on Wednesday as investors worried about the impact of Donald Trump’s presidency on the Chinese and global economies and fears that Trump’s policies could reignite US inflation.

The prospect of higher prices after Trump’s planned tax cuts, import tariffs and regulatory easing has given new momentum to the dollar, which has been rising since the Republicans’ election victory last week.

With expectations for a slight increase from the previous month, the focus is now on key US October consumer price data to be released later in the day.

“This is particularly timely given concerns that Trump’s tariff policies will be inflationary,” said Susannah Streeter, head of currency and markets at Hargreaves Lansdown.

“If prices already look rebellious, expectations will increase for Trump’s threats to be watered down.”

The readings will be scrutinized to get an idea of ​​the Federal Reserve’s plans for borrowing costs when it meets again in December.

Major European indices rose at midday on Wednesday.

Shares of Siemens Energy rose more than 15 percent after the German company reported positive annual results and raised its outlook.

Asian markets closed mostly lower as Trump appointed China hawks to key cabinet positions, raising concerns about another debilitating trade war between the economic superpowers.

“We expect the effective tariff rate applied to US imports from China to rise to around 40 percent,” said Harry Murphy Cruise of Moody’s Analytics.

“This would effectively double the rate today,” he told AFP.

“The threat of more tariffs, possibly up to 60 percent, is likely to be used as a negotiating tool.”