Ford Decision Cements Mexico as 'Front Line' for Trump's Policy Agenda

What happened in small-town Michigan Tuesday morning certainly didn't stay there.

Ford Motor Co.'s announcement in Flat Rock that it would forego building a $1.6 billion plant in Mexico sent the peso tumbling along with shares in one of the country's major parts suppliers. Ford jumped, while Kansas City Southern - which generates 41 percent of its revenue south of the border - sank. The cost of insuring Mexico's bonds against nonpayment touched the highest level in almost three weeks.

That a relatively minor investment decision from a $49 billion auto giant roiled such a diverse set of assets underscores the tricky landscape investors must navigate in 2017 as Donald Trump prepares to take office. The president-elect's proclivity for policy declarations on Twitter has left most without a playbook as he opines on everything from China's currency to the F-35 fighter.