By Dow Jones Newswires Staff
Global markets and U.S. futures fell as President Trump ramped up his threats against a handful of European countries as the U.S. seeks ownership of Greenland. Gold soared past $4,700 a troy ounce for the first time as investors continued to scramble for safe-havens, though the dollar--traditionally a home for unsettled investors--fell.
U.S. traders return to their desks Tuesday after the market holiday for Martin Luther King Jr. Day, with equity futures down across the board and 10-year U.S. Treasury yields at their highest levels since September. All eyes turn to Davos, where corporate leaders and policy makers mix before Trump speaks Wednesday.
--U.S. indexes fell sharply premarket, with all three major stock baskets falling over 1%. Futures for the Dow Jones Industrial Average and S&P 500 slipped 1.5% and 1.6% respectively, while the tech-heavy Nasdaq was down 1.9% premarket. Netflix will announce fourth quarter earnings Tuesday, which investors will parse for an insight into the company's bid to acquire Warner Bros. Discovery.
--Asian equities closed largely down. Japan's Nikkei 225 index fell 1.1% as technology and basic material stocks dropped, while tech stocks also dragged on Hong Kong's Hang Seng index as it declined 0.3%. China's benchmark Shanghai Composite was flat.
--European indexes continued to fall. The French CAC 40 and German DAX on Monday recorded their worst trading days since November. In Paris, the index was 0.7% lower as luxury stocks continued their decline, with Kering and LVMH down 2.5% and 1.3%, respectively. In Frankfurt, energy stocks led the DAX down 0.9%, with Siemens Energy falling 2.2%. The U.K.'s FTSE 100 was down 0.8% as financial stocks fell--including the London Stock Exchange Group, down 2.1%--while banks and luxury stocks pulled the FTSE MIB down 0.7% in Milan. Defense stocks also fell back after gaining Monday. The Spanish IBEX 35 was down 0.65% as energy stocks and financials slipped--insurer Mapfre was down 3.6%.
--The dollar was weaker as the DXY dollar index fell to a two-week low of 98.653. The greenback could stay under pressure in the near term if these tensions encourage foreign investors to increase their still-low protection against the risk of the currency falling, Barclays analysts said.
--Sterling briefly fell to a one-week low against the euro after U.K. jobs data showed unemployment in the country stayed steady above expectations, while wage growth continued to ease. The data likely still leave the Bank of England on track to cut interest rates, although the main focus will be on Wednesday's inflation data. The euro rises to a high of 0.8688 pounds after the data, from 0.8683 beforehand. Against a broadly weak dollar, sterling is up 0.4% at $1.3481, compared to $1.3435 before the data.
--The 10-year U.S. Treasury yield rose around 4.3 basis points to 4.275% in Asian afternoon trade, the highest level since early September. Yields on eurozone government bond yields rose in early trade, tracking U.S. Treasury yields higher. Moves were also likely impacted by a surge in long-dated Japanese government bond yields, which hit multi-year highs on concerns that an upcoming election could result in tax cuts, in turn denting the government's revenue. The yield on 10-year JGBs rose 4 basis points to 2.310% after earlier touching 2.330%--the highest since Feb. 1999, according to data provider Quick. Meanwhile, the 10-year German Bund yield rose 2.7 basis points at 2.865%, according to LSEG.
--Bitcoin and ether fell as investors continued to move away from risk assets. Bitcoin dropped to a low of $90,710 while ether reached a low of $3,108, according to LSEG data.
--Oil prices edged lower in early trading despite a weaker dollar and robust economic growth in China, as investors focused on renewed trade tensions between the U.S. and Europe. Brent crude was down 0.7% to $63.52 a barrel, while WTI slipped 0.5% to $58.45 a barrel. "While ICE Brent edged lower yesterday, settling 0.3% lower on the day, it held up relatively well amid the broader risk-off move in markets," analysts at ING said. "Continued firmness in ICE Brent timespreads will also help buoy the market, as it suggests a tighter spot physical market." Meanwhile, China's gross domestic product expanded 5% last year when adjusted for deflation, according to the latest data from the world's largest importer of crude oil.
--Gold prices soared past the $4,700 mark for the first time on a weaker U.S. dollar and fears of renewed trade tensions. Futures in New York climbed 2.8% to $4,726.30 a troy ounce in early trading, having reached $4,731.30 earlier in the session. The fall in the dollar made bullion cheaper for buyers using other currencies. Meanwhile, silver rose 6.7% to $94.45 an ounce.
Write to Barcelona Editors at barcelonaeditors@dowjones.com
(END) Dow Jones Newswires
January 20, 2026 04:22 ET (09:22 GMT)
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