Stocks Fall as Gold Is Fuelled by Greenland Fallout – Europe Market Wrap
Stocks fell and gold set a new high as trade tensions between the US and Europe rose over Trump’s effort to take control of Greenland.
European market indexes and US futures plummeted more than 1%, with the Stoxx 600 poised for its worst day in two months. German automakers led losses, with BMW falling 4%. The Dollar fell, while the Swiss Franc strengthened. Gold surpassed $4,660 per ounce. The US markets are closed today for a public holiday.
Trump’s vow to put tariffs on countries that oppose his quest to take power over Greenland risks reigniting the tariff-fueled volatility that roiled markets in the first months of his second administration. The selloff intensified as Monday’s session progressed, with European officials signalling that they were unlikely to back down and were preparing countermeasures.
Traders are also watching Japan, where PM Takaichi has scheduled an early election for February 8th. Takaichi stated that she will campaign on a temporary food sales tax drop as she seeks a national mandate for her concept of responsibly expansionary fiscal policy that promotes economic growth.
Earlier on Monday, the yield on 30-year Japanese paper increased by 11 bps to 3.58%, while rates on 10- and 20-year notes reached their highest levels since 1999.
