Overview
- President Trump said he will levy a 10% tariff from February 1 on goods from Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland, with reports indicating an increase to 25% in June if no agreement is reached on his Greenland plan.
- European stocks fell at the open, with Spain’s Ibex 35 down around 1% and broader benchmarks in Paris and Milan off up to about 1.5% to 1.6% as risk appetite weakened.
- Gold and silver set record highs according to market reports, while Brent and WTI crude slipped roughly 0.7% to 0.8% and the dollar edged lower.
- Media reports suggest the European Union could revive a roughly €93 billion package of retaliatory tariffs and consider using its anti-coercion tool in response to Washington’s move.
- Defense-linked shares outperformed, including a gain of more than 2% for Indra, while renewables and some financials lagged as U.S. markets were closed for Martin Luther King Jr. Day.