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The major U.S. index futures are currently pointing to a sharply lower open on Tuesday, with stocks likely to come under pressure as trading resumes following the long weekend.<\/p>\n
Renewed concerns about a trade war between the U.S. and Europe over President Donald Trump’s efforts to take control of Greenland are likely to weigh on the markets<\/span>.<\/p>\n Trump has threatened to impose new tariffs on several European nations if they oppose his attempt to purchase the Danish territory, which he claims is imperative for national security.<\/p>\n In a post on Truth Social, Trump announced plans to impose a 10 percent tariff on imports from Denmark, Norway, Sweden, France, Germany, the U.K., the Netherlands and Finland beginning February 1st.<\/p>\n Trump said the tariffs would be increased to 25 percent beginning June 1st and would remain in place until a deal is reached for the U.S. to purchase Greenland.<\/p>\n “Investors will be hoping for some sort of de-escalation deal on Greenland which removes the risk of a break-up or at least serious rupture in the Nato alliance,” said AJ Bell investment director Russ Mould. “If the crisis deepens it is unlikely to spell good news for global equities.<\/p>\n He added, “Nasdaq looks set to chalk up the biggest declines amid concern about possible retaliatory action from Europe against America’s big tech contingent.”<\/p>\n Stocks moved to the upside in early trading on Friday but quickly gave back ground and showed a lack of direction over the remainder of the trading session.<\/p>\n The major averages spent much of the day bouncing back and forth across the unchanged line before eventually closing modestly lower.<\/p>\n The Dow dipped 83.11 points or 0.2 percent to 49,359.33, the Nasdaq slipped 14.63 points or 0.1 percent to 23,515.39 and the S&P 500 edged down 4.46 points or 0.1 percent to 6,940.01.<\/p>\n For the week, the tech-heavy Nasdaq slid by 0.7 percent, while the S&P 500 and the Dow fell by 0.4 percent and 0.3 percent, respectively.<\/p>\n The choppy trading on Wall Street came following remarks from President Doanld Trump suggesting National Economic Council Director Kevin Hassett may not be his choice to become the next Federal Reserve chair.<\/p>\n “I see Kevin’s in the audience, and I just want to thank you. You ?were fantastic on television today,” Trump said during at appearance at the White House. “I actually want to keep you where you are, if you want to know the truth.”<\/p>\n Hassett had been seen as the frontrunner to replace Fed Chair Jerome Powell, whose term expires in May, but prediction markets now show former Fed Governor Kevin Warsh has surged into the lead following Trump’s remarks.<\/p>\n The latest developments may have led to some uncertainty about Trump’s pick for Fed chair and the outlook for interest rates.<\/p>\n Traders may also be reluctant to make significant moves as they keep an eye on rising geopolitical tensions around the world.<\/p>\n Trump’s threats to take control of Greenland continue to attract attention, with the president suggesting he may impose tariffs on countries that don’t go along with his plans for the territory.<\/p>\n Traders also continue to keep an eye on developments in Venezuela, political unrest in Iran and the ongoing Russia-Ukraine war.<\/p>\n In U.S. economic news, the Federal Reserve released a report showing industrial production grew by much more than expected in the month of December.<\/p>\n The Fed said industrial production climbed by 0.4 percent in December, matching an upwardly revised increase in November.<\/p>\n Economists had expected industrial production to inch up by 0.1 percent compared to the 0.2 percent uptick originally reported for the previous month.<\/p>\n Most of the major sectors ended the day showing only modest moves, contributing to the lackluster close by the broader markets.<\/p>\n Considerable strength was visible among commercial real estate stocks, however, as reflected by the 1.2 percent gain posted by the Dow Jones U.S. Real Estate Index.<\/p>\n Semiconductor stocks also extended the rally seen during Thursday’s session, driving the Philadelphia Semiconductor Index up by 1.2 percent to a record closing high.<\/p>\n On the other hand, steel stocks showed a notable move to the downside, with the NYSE Arca Steel Index falling by 1.2 percent after ending Thursday’s trading at its best closing level in over seventeen years.<\/p>\n Commodity, Currency Markets<\/b><\/p>\n Crude oil futures are climbing $0.57 to $60.01 a barrel after rising $0.25 to $59.44 a barrel last Friday. Meanwhile, after falling $28.30 to $4,595.40 in the previous session, gold futures are surging $128.40 to $4,723.80 an ounce.<\/p>\n On the currency front, the U.S. dollar is trading at 157.70 yen compared to the 158.10 yen it fetched on Monday. Against the euro, the dollar is trading at $1.1748 compared to yesterday’s $1.1645.<\/p>\n Asia<\/b><\/p>\n Asian stocks ended mostly lower on Tuesday as U.S. President Donald Trump’s tariff threats regarding Greenland reignited concerns about a trade war with the EU and NATO allies.<\/p>\n Trump tied Greenland sovereignty efforts to a Nobel Peace Prize snub and claimed that America must have “Complete and Total Control of Greenland.”<\/p>\n The dollar extended losses and gold hit a new high above $4.700 an ounce as Trump’s tariff threats left investors worried about exposure to U.S. assets. Oil prices traded lower in Asian trading on oversupply worries.<\/p>\n China’s Shanghai Composite Index finished marginally lower at 4,113.65 as the People’s Bank of China left its benchmark loan prime rate unchanged as expected, despite signs of cooling growth and a prolonged debt crisis in the real estate sector.<\/p>\n Hong Kong’s Hang Seng Index dipped 0.3 percent to 26,487.51, extending losses for a fourth straight session amid the threat of renewed tariff tensions.<\/p>\n Japanese markets fell sharply after Prime Minister Sanae Takaichi announced a snap general election for February 8, 2026.<\/p>\n Higher bond yields triggered selling, with the yield on 40-year bond hitting 4 percent for the first time since 2007 after Takaichi said she will accelerate discussions on reducing the consumption tax on food items for two years.<\/p>\n The Nikkei 225 Index slumped 1.1 percent to 52,991.10, extending losses for a fourth straight session on growing fiscal concerns and Trump’s renewed tariff threats against European allies over Greenland. The broader Topix Index settled 0.8 percent lower at 3,625.60.<\/p>\n Seoul stocks ended lower to snap a 12-day winning streak as traders watched for the European Union’s response to potential U.S. tariffs. The Kospi fell 0.4 percent to 4,885.75, with chipmakers and automakers leading losses due to profit taking.<\/p>\n Australian markets fell for a second day, dragged down by banks and miners. The benchmark S&P\/ASX 200 Index ended down 0.7 percent at 8,815.90, while the broader All Ordinaries Index closed down 0.6 percent at 9,138.60.<\/p>\n BHP Group shares fell 1 percent after the miner conceded its stand-off with China’s dominant iron ore buyer is taking a toll on prices.<\/p>\n Across the Tasman, New Zealand’s benchmark S&P\/NZX-50 index finished marginally lower at 13,573.93.<\/p>\n Europe<\/b><\/p>\n European stocks traded lower on Tuesday, extending losses from the previous session after the United States deployed military aircraft to Pituffik Space Base in Greenland, prompting Denmark to rush its Army chief and troops to the Arctic Island in a dramatic escalation of tensions.<\/p>\n In another significant development, U.S. President Donald Trump threatened to impose 200 percent tariffs on French wine and champagne after Paris rejected his invitation to join his proposed Board of Peace initiative aimed at resolving global conflicts, saying it “does not intend to answer favorably.”<\/p>\n In economic news, Destatis reported that German producer prices decreased 2.5 percent year-on-year in December, sharper than the 2.3 percent decline seen in November, driven by a sharp decline in energy prices.<\/p>\n The U.K. unemployment rate remained stable in the three months to November, the Office for National Statistics said. The jobless rate was estimated at 5.1 percent, unchanged from the three months to October and matching expectations.<\/p>\n The German DAX Index is down by 1.2 percent, the French CAC 40 Index and the U.K.’s FTSE 100 Index are both down by 0.9 percent.<\/p>\n In corporate news, AstraZeneca has slumped after the drug maker announced it would delist its American Depositary Shares and debt securities from Nasdaq.<\/p>\n Big Yellow Group shares have also fallen. The self-storage firm said closing occupied space fell by 82,000 square feet across the group’s 111 stores during the third quarter, a seasonally weaker period.<\/p>\n Ibstock has also tumbled. The building products manufacturer Ibstock said that market uncertainty had persisted into the new year.<\/p>\n Meanwhile, food flavorings firm Treatt has rallied in London after formalizing its relationship with major shareholder Dohler Finance.<\/p>\n French automaker Renault has also shown a strong move to the upside after sales volumes rose 3.2 percent in 2025.<\/p>\n Informa, a publishing, business<\/span> intelligence, and exhibitions company, has also jumped after lifting its 2026 growth targets.<\/p>\n U.S. Economic News<\/b><\/p>\n No major U.S. economic data is scheduled to be released today. <\/p>\n<\/p>\n<\/div>\n