MARKET WRAPS
Watch For:
Eurozone harmonized CPI; no major corporate trading updates expected
Opening Call:
European stock futures were lower after Asia stocks broadly sold off. The dollar weakened. Gold and oil rose.
Equities:
European stock futures were lower as U.S. President Trump said he would impose 10% tariffs on imports from several European countries in an effort to pressure Denmark to sell Greenland to the U.S.
The move risks upending a landmark trade deal Trump reached with the European Union last year that was poised to lower tariffs on many U.S. exports.
The leaders of some of the most powerful political groups in the European Parliament-which must approve the deal-said Saturday that steps to fully implement the pact should be put on hold.
Trump's tariff threat against Europe over Greenland are sparking a risk-off tone, NAB's chief economist Sally Auld said.
"It is likely that this latest development will further delay efforts by the European Parliament to vote on the U.S.-Europe trade deal negotiated last year," Auld said.
Forex:
The U.S. dollar weakened. There's increasing evidence that U.S. assets, including the greenback, are now carrying a much higher political risk premium, said Chris Weston, head of research at Pepperstone.
This would compel foreign investors to reduce exposure to U.S. assets. Whether this leads to outright reductions in U.S. equity exposure is debatable, but it may well encourage investment funds to reduce their dollar notional exposures held in relation to their U.S. equity holdings, he added.
That would hurt the dollar and add further upside pressure to the precious metals trade, Weston said. Uncertainty is building, and the ability to price risk with confidence is diminished, he added.
Bonds:
Mortgage Bankers Association researchers said, "Rate volatility has diminished, as the future course of monetary policy has become clearer and financial markets have been relatively calm."
Traders can call a wrap on Fedspeak, as the blackout period before the January meeting started on Saturday.
The big news of the week could come from the Supreme Court, which will hear oral arguments around the attempted firing of Lisa Cook and which could hand down its decision on the president's tariff powers.
Energy:
Oil edged higher. Middle East tensions continued to fade, easing worries over possible supply disruptions.
Given recent statements from President Trump, the risk of immediate U.S. intervention in Iran has been downgraded, said Commerzbank Research's Barbara Lambrecht in a research report.
This has caused oil prices to decline, though the risk that the situation there escalates remains, the commodity analyst said.
"Should the situation ease, the [upcoming] IEA's monthly report could shift the focus to oversupply and cause oil prices to fall," the analyst added.
Metals:
Precious metals climbed on likely safe-haven demand. Trump's latest tariff announcement has escalated trade tensions into an entirely new dimension-one driven less by economic logic and more by political motive, " said two members of ING's economic and financial analysis division.
"It is also pushing the long-standing transatlantic relationship into a severe crisis, with a clear risk of further escalation and unwarranted negative consequences for both Europe and the US economy," they added.
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Base metals rose. Within the complex, copper demand remained exceptionally strong, thanks to electric vehicles, energy infrastructure, artificial intelligence and resilient U.S. consumption, said ANZ Research analysts.
Persistent mine disruptions could also constrain copper supply and maintain prices above $11,000 a metric ton, they added.
Meanwhile, Indonesian nickel supply growth is moderating amid rising policy-driven uncertainty and the market could shift into deficit by next year, ANZ said.
TODAY'S TOP HEADLINES
Trump to Hit European Nations With 10% Tariffs as He Presses for Sale of Greenland
WEST PALM BEACH, Fla.-President Trump said he would impose 10% tariffs on imports from several European countries in an effort to pressure Denmark to sell Greenland to the U.S.
The move risks upending a landmark trade deal Trump reached with the European Union last year that was poised to lower tariffs on many U.S. exports. The leaders of some of the most powerful political groups in the European Parliament-which must approve the deal-said Saturday that steps to fully implement the pact should be put on hold.
Europe Is Bracing for a New Trade Fight With Trump. Here Are Its Options.
BRUSSELS-European leaders racing to respond to the threat of U.S. tariffs for opposing President Trump's plan to take control of Greenland have an arsenal of options, including trade retaliation, reducing defense ties and a "bazooka" to defend against economic coercion.
Individually, the nations Trump has threatened with economic measures can do little about his 10% tariffs, but as a unit they could raise the cost of using the levies to extract concessions on Greenland, a semiautonomous Danish territory.
In Iran, Streets Full of Soldiers and Warnings From Loudspeakers
The protesters who filled the streets of Tehran are gone, replaced by security forces and reminders of the violence used by the regime to suppress a national uprising aimed at ending its rule.
Members of the Basij pro-government militia patrolled the streets of Tehran on motorbikes in recent days, with some shouting, "Don't come out! We'll shoot you!" according to residents of the capital. A medical student in Tehran said he counted the charred remains of at least five banks. Many shops remain closed. Universities, a hotbed of protests, are still closed.
Bank CEOs Carefully Push Back on Trump's Credit-Card Rate Cap
Bank executives are tiptoeing around President Trump's call to temporarily cap credit-card interest rates at 10%, opposing the idea while making sure not to antagonize the White House.
"First of all, I think we all agree that the underlying issue of focusing on affordability...is a real issue," Wells Fargo Chief Executive Charlie Scharf said on a call with reporters Wednesday when asked about a rate cap. "And so, what the right response to that is something that we do think should be carefully considered."
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Expected Major Events for Monday
00:01/UK: Jan Rightmove House Price Index
08:00/AUT: Dec CPI
08:00/CZE: Dec PPI
08:00/SVK: Dec Harmonized CPI
08:00/SPN: Nov Trade Balance
08:30/POR: Nov Balance of Payments
09:30/UK: Oct Card Spending statistics
09:30/UK: S&P Global UK Consumer Sentiment Index
10:00/CYP: Dec Harmonised CPI
10:00/MLT: Dec Harmonised CPI
10:00/EU: Dec Harmonised CPI
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(END) Dow Jones Newswires
January 19, 2026 00:01 ET (05:01 GMT)
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