Global Equities Fall as Investors Look to Havens After Trump Tariff Threats

By Dow Jones Newswires Staff

Global equities fell following President Trump's threat Saturday to hit several European countries with 10% tariffs in order to pressure Denmark into selling Greenland. Investors turned from risk to traditional safe-haven assets, with gold and silver surging to fresh records as the Swiss franc gained. European equity markets followed their Asian peers down, however, as the continent's automakers and luxury stocks--particularly those with large exposure to the U.S.--led the fall. Oil prices and cryptocurrencies also fell as investors pulled back from risk, as European sovereign bonds rallied.

U.S. equity and bond markets are closed Monday for Martin Luther King Jr. Day.

--U.S. futures fell, with the tech-heavy Nasdaq slipping 1.2% premarket. Futures for the S&P 500 and the Dow Jones Industrial Average also dropped, falling 0.8% and 0.65% respectively. Investors await key personal consumption expenditures data scheduled for release Thursday.

--Asian equity indexes mostly fell, though China's benchmark Shanghai Composite gained 0.3% as China's fourth-quarter GDP grew ahead of forecasts at 4.5% year on year. Korea was a bright spot, as semiconductor companies spurred the country's Kospi 200 index up 1.3% after U.S. company Micron Technology said it will acquire a chip-making site in Taiwan. In Japan, the Nikkei 225 index dropped 0.65% as yields on 10-year Japanese government bonds climbed to multi-decade highs over continued fears of increased fiscal stimulus. In Hong Kong, the Hang Seng index fell 1.05% as pharmaceutical and technology stocks tumbled.

--The dollar fell following President Trump's tariff threat, with the DXY dollar index dropping 0.3% to 99.114. The Swiss franc gained on the renewed tariff threat. Though there is demand for safe havens, there are "no signs of panic with the market clearly hoping an off-ramp will be found," Rabobank's Jane Foley says in a note. The euro fell 0.2% to 0.9293 Swiss francs after reaching a two-week low of 0.9268 overnight, while the currency recovered against the dollar after reaching a seven-week low overnight. The euro rose 0.2% to $1.1620 after reaching a low of $1.1570.

--The German 10-year Bund yield was flat at 2.834%, while yields on U.K. government bonds--or gilts--edged lower amid demand for safe-haven assets. Ten-year gilt yields declined 0.5 basis point to trade at 4.405%. Investors look to U.K. labor market data and inflation data this week for insights on the possible path of interest rate cuts by the Bank of England.

--Cryptocurrencies were trading lower at the start of the week. Bitcoin fell 3.0% to $92,530.62, while ethereum was down 4.4% at $3,192.30. An expected vote by the Senate Banking Committee to advance crypto market-structure legislation last week was postponed, as Coinbase's CEO said the company couldn't support the bill as written. The largest U.S. crypto exchange pulling its support of the bill could put its future in jeopardy.

--Oil prices fell on a broader risk-off tone across markets/ Meanwhile, with no further escalation in U.S.-Iran tensions over the weekend, concerns about supply disruptions subsided. In early trading, Brent crude was down 1.1% to $63.42 a barrel, while WTI slipped 1% to $58.82 a barrel. "Structurally, crude remains under pressure from expectations that supply will outpace demand this year, although pockets of tightness persist, including shortages from Kazakhstan due to Black Sea disruptions," said Soojin Kim from MUFG.

--Precious metals surged to fresh records, driven by investor demand for safe-haven assets. In early trading, gold futures in New York rose 1.7% to $4,673.80 a troy ounce, having touched $4,698 earlier in the session. Silver climbed 5.1% to $93.10 an ounce after hitting a high of $94.37. Trump's move risks upending a landmark trade deal reached with the EU last year, raising concerns about trade disruption and geopolitical instability. "Combined with ongoing Iran risks, concerns about Fed independence, and investor aversion to the dollar and U.S. government bonds amid rising fiscal debt worries, the underlying demand for hard assets remains firm," Saxo Bank analysts said.

Write to Barcelona Editors at barcelonaeditors@dowjones.com

(END) Dow Jones Newswires

January 19, 2026 04:39 ET (09:39 GMT)