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Global markets surged as US President Donald Trump stepped back from the threat of tariffs regarding Greenland and confirmed that military force would not be used to take the autonomous Danish territory.
Wall Street futures were looking positive, reflecting investor confidence in recent economic data, which indicates the U.S. economy’s robustness. By 9:15 a.m. ET, Dow futures rose 0.41%, S&P 500 futures increased 0.6%, and Nasdaq futures jumped 0.91%.
Canadian TSX futures mirrored this upward trend.
In Canada, eyes are on the results from Novagold Resources.
On Wall Street, many investors were focused on earnings reports from Procter & Gamble, GE Aerospace, Intel, Abbott Laboratories, Capital One, CSX, Alcoa, and Freeport-McMoRan.
However, Kyle Rodda, a senior financial market analyst at Capital.com, cautioned, “The turmoil isn’t finished yet, and markets will likely remain volatile due to the unpredictable foreign policy of the Trump administration.”
Analysts highlighted the need for caution, warning that investors should not become too comfortable, as tariff threats might be employed regularly.
“The danger lies in complacency. Investors tend to overlook threats thinking they will be fine, until one day they aren’t,” noted Matthew Tuttle, CEO of Tuttle Capital Management.
Across the pond, the pan-European STOXX 600 saw an increase of 0.93% in morning trading. Britain’s FTSE 100 rose 0.4%, Germany’s DAX went up 1.01%, and France’s CAC 40 gained 0.98%.
In Asia, Japan’s Nikkei Stock Average closed up by 1.73%, while Hong Kong’s Hang Seng Index inched up by 0.17%.
merchandise
Oil prices declined as President Trump eased his threats related to Greenland and Iran, prompting investors to reevaluate supply and demand forecasts.
Brent crude oil slipped by 1.92% to $63.99 per barrel, while West Texas Intermediate (WTI) for March delivery dropped 2.05% to $59.38 per barrel.
According to Ole Hansen, chief commodity analyst at Saxo Bank, “The risk premium tied to the Greenland situation is decreasing, as is the uncertainty surrounding Iranian supply.”
In the commodities market, spot gold fell 0.2% to US$4,825.22 per ounce. U.S. gold futures for February delivery also dropped 0.2%, reaching $4,827.80 an ounce.
currency and bonds
The Canadian dollar gained ground against the US dollar.
In early trading, the price fluctuated between US$72.22 and US$72.44. Over the past month, the Canadian dollar has weakened by about 0.77% against its U.S. counterpart.
The US dollar index, which tracks the dollar’s performance against various currencies, slipped by 0.14% to 98.62.
The euro advanced 0.26% to US$1.1716, whereas the British pound dipped 0.12% to US$1.3413.
In bond markets, the yield on the US 10-year Treasury note rose to 4.258%.
economic news
Bank of Japan Monetary Policy Meeting (ongoing until Friday).
Japan’s trade balance.
Eurozone consumer confidence.
8:30 a.m. ET: Canadian new home price index. Analysts anticipate a 0.1% decrease from last month and 2.0% from a year ago.
8:30 a.m. ET: U.S. new jobless claims increased slightly to 200,000 for the week ending Jan. 17, lower than the expected 205,000.
8:30 a.m. ET: U.S. real GDP grew at an annualized rate of 4.4% in the third quarter, slightly above the anticipated 4.3%.
8:30 a.m. ET: Third-quarter U.S. pre-tax corporate profits are predicted to rise 9.1% year-on-year.
10 a.m. ET: U.S. personal spending and income for November. Consensus expectations are a month-on-month increase of 0.5% and 0.4%, respectively.
10 a.m. ET: U.S. Core PCE Price Index for November is expected to see sales rise by 0.2% from the previous month and 2.7% from last year.
