North American Morning Briefing: Futures Rise With Trump To Speak at Davos Forum

OPENING CALL

Stock futures pointed to a recovery Wednesday after the three major U.S. stock indexes on Tuesday suffered their sharpest declines since October.

The expected higher open comes as trans-Atlantic tensions over Greenland continue to spur demand for safe-havens and raise concerns about foreign investors distancing themselves from U.S. assets.

Speaking at the World Economic Forum ahead of President Trump's arrival in Davos, Treasury Secretary Scott Bessent said he wasn't concerned about the selloff in U.S. government bonds. He tied the recent jump in yields to moves in the Japanese bond market .

European leaders, meanwhile, hardened their tone against President Trump's ambitions for Greenland, as the European Commissioner for Economy and Productivity said the EU was ready to deploy

retaliatory measures if the U.S. followed through with its tariff threats.

"We're now looking at exact ways to respond to the situation... we are obviously willing to engage with [the] United States and find a constructive solution, but also ready to react if this is not forthcoming."

Trump is expected to address the Davos forum later today.

Beyond geopolitics, the Supreme Court is to hear arguments in the case to remove Federal Reserve governor Lisa Cook, a key test of the central bank's independence.

Market Insight

Clients are cautious about the U.S. market , Commerzbank's Chief Executive said during the World Economic Forum in Davos.

The bank, however, doesn't see clients moving away from U.S. assets as the market remains attractive.

Economic Insight

Trump's tariff threats could affect monetary policy, according to Bundesbank.

"Is this tariff discussion a game-changer? Maybe," the bank's president told CNBC in an interview in Davos. "This is a very delicate situation. All these uncertainties regarding the tariff discussions will have some spillovers to monetary policy I really hope that the U.S. president today in his speech will change his mind and come to a different position."

Stocks to Watch

Kraft Heinz shares slipped 3.8% after it said that its top shareholder might sell shares it holds in the company.

Netflix fell 5.8% despite the company posting higher revenue .

United Airlines gained 4% after it said it expected earnings to jump this year.

Watch For:

U.S. Pending Home Sales for December; U.S. Construction Spending for September and October; Canada Industrial Product and Raw Materials Price Indexes for December; Johnson & Johnson 4Q earnings

Today's Top Headlines/Must Reads:

- Netflix Earnings Shed Light on Why It Needs Warner

- Why Elon Musk Is Racing to Take SpaceX Public

- Russia Cheers the Growing NATO Rift Over Greenland

MARKET WRAPS

Forex:

The dollar rose slightly, but stayed under pressure , as President Trump's tariff attacks against European allies raised concerns about foreign investors moving away from U.S. assets.

The euro eased after reaching a three-week high against the dollar as investors waited for Trump's remarks at the World Economic Forum.

Sterling rose against the euro and against the dollar after the U.K.'s December inflation data dampened expectations for further interest-rate cuts.

Bitcoin remained weaker along with other cryptocurrencies after hitting a three-week low overnight amid widespread risk aversion stemming from tensions between the U.S. and Europe.

Bonds:

Global government bond markets were calmer after a massive selloff Tuesday, with investors cautiously awaiting President Trump's Davos speech.

Treasury yields declined in Asian afternoon trade, paring some of Tuesday's significant yield increases.

Energy:

Oil prices fell as Trump's push to annex Greenland revived concerns over trade frictions that could weigh on global demand.

Metals:

Gold prices hit a new record, soaring past the $4,800 mark amid global demand for safe-haven assets in the wake of tensions over Greenland. Silver futures rose as well amid larger concerns about the world economy.

"Turmoil in Japan's sovereign bond market has intensified concerns over fiscal sustainability in major economies, reinforcing the so-called debasement trade in which investors shun currencies and government debt in favor of hard assets," MUFG said.

Gold prices are likely to be supported from sustained, largely price-insensitive demand from central banks looking to diversify their reserves, T. Rowe Price said.

Gold could extend its rally towards $5,000/oz as geopolitical risk and macro uncertainty drive sustained risk-off positioning, Phillip Nova said.

Copper prices rose in midmorning trading, with futures on the London Metal Exchange up 0.9% to $12,910.50 a metric ton. Price gains, however, are capped by investor concern that rising U.S.-Europe tensions could spill into a broader trade dispute, weighing on metal demand.

   TODAY'S TOP HEADLINES 

Amazon Joins the Big-Box League With Its Largest-Ever Store

Amazon is launching its largest-ever retail store, planning a new property in the Chicago suburbs with a footprint big enough to squash the average Walmart store.

About half of Amazon's proposed big-box store in Orland Park, Ill., will sell groceries, general merchandise such as diapers and paper towels, and food prepared on site. The other half would be used for fulfillment of online and in-store orders, Amazon said.

Rio Tinto Produced More Copper, Slightly Less Iron Ore Last Year

Rio Tinto reported an 11% increase in its copper output in 2025, surpassing guidance to investors, and said iron-ore shipments from its Australian mines were only slightly lower following record output in the final quarter of the year.

The world's second-biggest miner by market value said that, on the whole, group production was 8% higher than in 2024, while shipments of the commodities it mines rose by 5%.

China Vanke Wins Reprieve on Overdue Bond Payments

China Vanke, one of the country's largest real-estate companies, received a small reprieve as its bondholders approved a delay of payments on an overdue bond.

The embattled home builder has been battered by the prolonged crisis in the Chinese property sector but is viewed as one of China's more financially resilient developers and one of the few major players yet to default on its debt.

Chinese EVs Blow Past Tesla and Tariffs En Route to Global Reign

Julian Scot-Smith was window shopping at a Porsche dealership with his wife in London's fancy Mayfair district before Christmas, sizing up the SUVs.

Then the couple peeked into another dealership around the corner.

IEA Lifts Oil Demand Forecast But Warns Supply Surplus Persists

The International Energy Agency raised its forecast for global oil-demand growth due to an improved economic outlook and lower crude prices, but warned supply is still expected to outpace consumption.

The Paris-based organization, which represents major oil-consuming nations, now expects demand to grow by 930,000 barrels a day this year from 860,000 barrels a day previously. That compares with demand growth of 850,000 barrels a day last year.

BOJ Likely to Take a Breather as It Gauges Impact of Last Hike

TOKYO-The Bank of Japan is likely to hold policy settings steady this week as it examines the effects of its latest interest-rate hike in December.

In the final month of last year, the central bank raised its policy rate by 25 basis points to 0.75%-the highest level in three decades.

Greenland Clash Risks Undermining America's Place in World Economic Order

Escalating tensions over Greenland are supercharging a dynamic that was already under way: a shift in the world economic order that had put the U.S. at the center of the global economy.

For investors the world over, America has long been a beacon of safety when uncertainty reigns, a nation whose deep and liquid financial markets are the premier destination for capital and home of a currency that is the lingua franca of international transactions. That is changing.

Trump's Threats to Allies Stir Worry That U.S. Has Lost Its Way

DAVOS, Switzerland-President Trump is showing up for an annual gathering of the global elite here in the Swiss Alps, swinging a wrecking ball at the international order.

Trump insists he will take possession of Greenland from North Atlantic Treaty Organization ally Denmark-by force if he has to. Ahead of his trip, he posted an image portraying him lecturing European leaders in front of a map in which Greenland, Canada and Venezuela are emblazoned with the Stars and Stripes.

Trump's Greenland Strategy Draws From Familiar Playbook

WASHINGTON-European leaders have for months responded to President Trump's desire to acquire Greenland with a simple refrain: it isn't for sale.

Now, those same leaders are rushing to set up meetings with Trump about the future of the territory after the U.S. president threatened to bludgeon Europe's economy with stiff tariffs.

Trump Seeks 'Decisive' Options for Iran as Assets Move Into Middle East

WASHINGTON-After pulling back from strikes on Iran last week, President Trump is still pressing aides for what he terms "decisive" military options, U.S. officials said, as Iran appears to have tightened its control of the country and targets protesters through a crackdown that has killed thousands.

The discussions are happening while the U.S. sends an aircraft carrier and jet fighters to the Middle East. Those deployments may be the start of a broader buildup that would give Trump the firepower to strike Iran should he choose to use them.

Write to pierre.bertrand@wsj.com

TODAY IN CANADA

Earnings:

Rupert Resources 4Q

Economic Indicators (ET):

0830 Industrial product and raw materials price indexes for December

Stocks to Watch:

(MORE TO FOLLOW) Dow Jones Newswires

January 21, 2026 06:17 ET (11:17 GMT)