Market Update from London
On January 2, 2026, London experienced a chilly but sunny day as visitors flocked to the observation deck in Greenwich Park, enjoying views of the distant Canary Wharf financial district.
LONDON — European stock markets started the week on a slightly positive note on Monday morning.
The pan-European Stocks 600 index was up nearly 0.1% by 8:45 a.m. ET in London, with most sectors showing gains, though major stock exchanges had mixed performances.
This week, geopolitics might weigh heavily on market sentiment as tensions between the US and Canada rise once more. Canadian Prime Minister Mark Carney mentioned that US President Donald Trump stated he won’t pursue a free trade agreement with China. If Canada goes ahead and signs a trade deal with China, Trump threatened to impose 100% tariffs.
“Canada respects our engagement, our commitment,” Carney noted. He emphasized that Canada is bound under the Canada-United States-Mexico Agreement (CUSMA) to avoid entering into free trade agreements with non-market economies without prior notice. “We have no intention of doing anything like that with China or any other non-market economy,” he added.
In early stock trading, Danone’s shares dropped 2.9% after the French food manufacturer was compelled to recall lots of infant formula due to the detection of toxins.
On a brighter note, Ryanair’s stock rose almost 0.1% as the budget airline increased its full-year fare growth forecast to above 7%, exceeding its target, thanks to a 9% revenue boost.
Meanwhile, Airbus shares fell nearly 1% as the aircraft manufacturer grapples with escalating geopolitical challenges. CEO Guillaume Fauré remarked in a memo seen by Reuters that 2026 has been characterized by an “unprecedented number of crises.” The company is set to announce its results next month.
In other news, gold prices hit new all-time highs, with the spot price climbing 2.3% to reach $5,096. US gold futures also rose by 2.3%, reaching $5,094.
Asia-Pacific markets showed mixed performances on Monday as investors took stock of the situation. US stock futures dipped overnight as traders awaited key earnings reports and a US monetary policy meeting.
This week, over 90 S&P 500 companies are set to release quarterly reports, including major players like Apple, Meta Platforms, and Microsoft. So far, the earnings season has been robust, with 76% of companies exceeding expectations, according to FactSet.
Lastly, traders will be keeping a close watch on the US Federal Reserve as it prepares to announce its first policy decision of the year on Wednesday. While it is largely anticipated that the Fed will leave overnight rates unchanged, Wall Street is eager for insights into when rate cuts might occur.
