Caution dominated global stock, currency and commodity markets on Friday, after Donald Trump was sworn in as 45th President of the United States, underscoring his protectionist agenda in his inaugural address and possibly ringing in a new era for financial markets all around the world.

On Wall Street, the Dow Jones Industrial Average, the S&P 500 and the Nasdaq, which had all risen slightly in the lead up to Mr Trump's address, pulled back somewhat after he spoke, but moves were muted.

In the UK, the FTSE 100 earlier ended the session little changed, making this week one of its worst since November.

The index had been on a tear, cranking out successive all-time record closes during the early part of January, spurred by a dropping pound. But sterling’s slide has paused in recent days as attention has shifted away from Brexit and towards the inauguration of Mr Trump and what it means for global economies and asset classes.

The pan-European Stoxx Europe 600 index ended the day largely unchanged too.

Shares tend to be considered a relatively risky asset to hold during times of market uncertainty, with investors preferring to snap up top-rated government bonds, currencies considered particularly stable – like the Swiss franc – and gold.

“The problem is that no one knows for certain what Mr. Trump will do,” investors at Janus Capital Group wrote in a note to clients.

“Two very different forces are pulling on the president-elect,” they added. “The first is the populist movement that elected him. The second is the conservative orthodoxy of the Republican Party that now claims him.”

Geoffrey Yu, head of the UK investment office at UBS Wealth Management, said that it is important to remember that the inauguration is not intended to be a policy platform.

“So we should not be surprised if the market shrugs its shoulders today.”

In the aftermath of Mr Trump’s November election victory stock markets, especially in the US surged, spurred by the New York businessman’s campaign promises of tax and regulatory roll backs and higher infrastructure spending.

Bank stocks enjoyed especially sharp rises and the dollar rallied hard too, but in recent weeks moves have become more muted. Investors appear to be looking for proof that the rallies will be justified by hard policy action from the President.

“Comments from President Trump that indicate his stance towards trading partners, particularly in Europe and China, and the conciliatory or punitive tone of those remarks, have the greatest potential to sway market sentiment,” Mr Yu added.

Trump Inauguration protests around the World Show all 14 1 /14 Trump Inauguration protests around the World Trump Inauguration protests around the World Activists from Greenpeace display a message reading "Mr President, walls divide. Build Bridges!" along the Berlin wall in Berlin on January 20, 2017 to coincide with the inauguration of Donald Trump as the 45th president of the United State Getty Trump Inauguration protests around the World An activist holds up a sign at the "We Stand United" rally on the eve of US President-elect Donald Trump's inauguration outside Trump International Hotel and Tower in New York on January 19, 2017 in New York Getty Trump Inauguration protests around the World Protesters burn a U.S. flag and a mock flag with pictures of U.S. President-elect Donald Trump outside the U.S. embassy in metro Manila, Philippines Getty Trump Inauguration protests around the World Filipino protestors hold placcards during a protest rally in front of the US embassy in Manila, Philippines, 20 January 2017. On the eve of President-elect Donald Trump's inaguration as the 45th president of the United States, Filipinos and Fil-Americans held a protest in front of the US embassy in Manila to denounce the incoming US president. Getty Trump Inauguration protests around the World Hong Kong police officers and security guards look on as an anarchist protester belonging to the Disrupt J20 movement sits after using a heavy duty D-lock and motorcycle lock to chain himself to a railing at the entrance gate to the Consulate General of the United States of America in Hong Kong to protest the inauguration of United States President-elect Donald Trump, Hong Kong, China, 20 January 2017. Two activists were arrested and taken away by Hong Kong police during the demonstration. Getty Trump Inauguration protests around the World A banner is unfurled on London's Tower Bridge, organised by Bridges Not Walls - a partnership between grassroots activists and campaigners working on a range of issues, formed in the wake of Donald Trump's election, which aims to build bridges to a world free from hatred and oppression. Getty Trump Inauguration protests around the World Protesters chain themselves to an entry point prior at the inauguration of U.S. President-elect Donald Trump in Washington, DC, U.S. Getty Trump Inauguration protests around the World Bridges Not Walls banner dropped from Molenbeek bridge in Brussels, Belgium, 20 January 2017, in an Greenpeace action part of protests Wolrd protest in solidarity with people in the US, the day Donald Trump sworn in as the 45th President of the United States. Getty Trump Inauguration protests around the World A woman holds an anti-U.S. President-elect Donald Trump placard during a rally in Tokyo, Japan, Getty Trump Inauguration protests around the World A Palestinian protester holds a placard during a demonstration against the construction of Jewish settlements in the occupied West Bank and against US President-elect Donald Trump, on January 20, 2017, near the settlement of Maale Adumim, east of Jerusalem Getty Trump Inauguration protests around the World Banners on North Bridge in Edinburgh as part of the Bridges Not Walls protest against US President Donald Trump on the day of his inauguration Getty Trump Inauguration protests around the World Russian artist Vasily Slonov (L) and his assistant carry a life-sized cutout, which is an artwork created by Slonov and titled "Siberian Inauguration", before its presentation on the occasion of the inauguration of U.S. President-elect Donald Trump, in a street in Krasnoyarsk, Russia Getty Trump Inauguration protests around the World A woman holds a banner during a march to thank outgoing President Barack Obama and reject US President-elect Donald Trump before his inauguration at a park in Tokyo, Japan, 20 January 2017. EPA Trump Inauguration protests around the World Palestinian demonstrators protesting this week against a promise by Donald Trump to re-locate the US embassy to Jerusalem Reuters

On Friday, a commonly-used trade-weighted dollar index inched marginally higher during the European trading session and defended those gains after Mr Trump was sworn in.

Gold was slightly higher on the day, trading at around $1,203.60 per troy ounce.

Schroders’ Chief Economist Keith Wade wrote in a note this week that while investors "have fully bought into Trump’s promise to 'make America great again' ... the impact of the new president’s fiscal policies will not be felt until end-2017 and into 2018”.