The beginning of the 2026 has been all about US president Trump’s threats and actions up to now. Within the first week, it was the invasion of Venezuela. Final week, it was the assault on the Fed’s independence and escalating geopolitical tensions involving Iran. This week, tariffs are as soon as once more again within the image as Trump needs the EU to surrender Greenland.
What a time to be alive, eh?
The most recent tariffs risk is inflicting a stir in markets to start out the brand new week now with threat trades on the backfoot. Trump is threatening 10% tariffs on “any and all items” ranging from 1 February and that may bounce as much as 25% on 1 June after. That until “a deal is reached for the whole and complete buy of Greenland”. 🤪
Goldman Sachs estimates that the financial hit shall be on exports value roughly 1% to 1.5% of euro space GDP. The breakdown by nation may be seen beneath:
The EU has been swift to announce retaliation, with the massive one being their €93 billion tariffs bundle on US items. As a reminder, this bundle is one which was suspended final yr after each side got here to a “commerce deal” over the summer season. It’s stated that these tariffs may very well be enforce on 6 February, simply days after Trump’s tariffs hit.
For now, threat trades are taking a knock. US markets may be closed in the present day for the lengthy weekend however futures are pointing decrease already. S&P 500 futures are down 0.8% and Nasdaq futures down 1.0%. In the meantime, European inventory futures are pointing to a spot decrease by over 1% to start out the week.
Amid the geopolitical tensions and erratic US administrative coverage, valuable metals are as soon as once more catching recent bids whereas the greenback is sitting decrease throughout the board. The latter did see some slight features early on however they’ve been fast to fade. This is a snapshot of greenback pairs in the mean time:
As for valuable metals, they opened with a spot greater to start out the week with gold now up 1.7% to $4,671 and silver up 3.7% to $93.49 presently. Scorching, sizzling, sizzling. 🔥
