US futures sink after Trump warns of higher tariffs for 8 countries over
Greenland issue
[January 19, 2026] By
ELAINE KURTENBACH
BANGKOK (AP) — European shares and U.S. stock futures skidded Monday
after U.S. President Donald Trump threatened to slap a 10% extra tariff
on imports from eight European countries because they oppose having
America take control of Greenland.
Germany's DAX lost 1.1% to 25,020.35 and the CAC 40 in Paris shed 1.3%
to 8,150.78. Britain's FTSE 100 declined 0.3% to 10,206.12.
The future for the S&P 500 fell 0.8%, while that for the Dow Jones
Industrial Average was down 0.7%.
The European countries targeted by Trump blasted his threat to raise
tariffs, saying they “undermine transatlantic relations and risk a
dangerous downward spiral.” An unusually strong joint statement from
Denmark, Norway, Sweden, France, Germany, the United Kingdom, the
Netherlands and Finland was the most forceful rebuke from the European
allies since Trump returned to the White House almost a year ago.
Trump's moves are testing the strategic alignment and institutional
trust underlying support from Europe, the largest trading partner and
provider of financing to the United States, Stephen Innes of SPI Asset
Management said in a commentary.
“In a world where geopolitical cohesion within the Western alliance is
no longer taken for granted, the willingness to recycle capital
indefinitely into U.S. assets becomes less automatic. This is not a
short-term liquidation story. It is a slow rebalancing story, and those
are far more consequential,” Innes said.
In Asia, shares were mixed after China reported that its economy
expanded at a 5% annual pace in 2025, though it slowed in the last
quarter. Strong exports, despite Trump's higher tariffs on imports from
China, helped to offset relatively weak domestic demand.
Hong Kong's Hang Seng index lost 1.1% to 26,563.90. The Shanghai
Composite index gained 0.3% to 4,114.00.
In Tokyo, the Nikkei 225 declined 0.7% to 53,583.57. Japanese Prime
Minister Sanae Takaichi was due to hold a news conference later Monday
as she prepares to dissolve the parliament for a snap election next
month.
Elsewhere in Asia, South Korea's Kospi jumped 1.3% to 4,904.66, pushing
further into record territory on strong gains for tech-related
companies. Computer chip maker SK Hynix climbed 1.1%.
Taiwan's Taiex added 0.7%, while the Sensex in India fell 0.6%.
On Friday, stocks edged lower on Wall Street as the first week of
corporate earnings season ended with markets trading near record levels.
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A person walks in front of an electronic stock board showing Japan's
Nikkei index at a securities firm Monday, Jan. 19, 2026, in Tokyo.
(AP Photo/Eugene Hoshiko)
 The S&P 500 fell 0.1% and the Dow
industrials lost 0.2%. The Nasdaq composite shed 0.1%. They all
notched weekly losses, while smaller company stocks fared better.
The Russell 2000 eked out a 0.1% gain.
Technology stocks were the strongest forces behind the market's
moves throughout most of the day. Several big technology stocks made
strong gains and helped offset losses elsewhere.
Earnings updates might give investors a better sense of how
consumers are spending their money and how businesses are faring
with persisting inflation and higher tariffs. Results from the
technology sector are being scrutinized by investors trying to
figure out whether the high stock prices fueled by the craze around
artificial intelligence are justified.
This week will bring a broader mix of earnings from airlines,
industrial companies, and technology companies. United Airlines, 3M,
and Intel are all scheduled to release their quarterly earnings
results.
The U.S. central bank will get another update on inflation this week
with the government’s release of the personal consumption
expenditures price index, or PCE. It is the Federal Reserve’s
preferred measure for inflation.
The Fed’s next policy meeting is in two weeks, when it is expected
to keep its current benchmark interest rate as it strives to balance
a slowing jobs market with stubbornly high inflation, which remains
above the Fed’s 2% goal.
In other dealings early Monday, U.S. benchmark crude oil slipped 37
cents to $58.97 per barrel. It has settled after a spate of
volatility during widespread protests in Iran against that country’s
leadership.
Brent crude, the international standard, gave up 45 cents to $63.68
a barrel.
The price of gold resumed its upward climb, gaining 1.6%, while the
price of silver jumped 4.4%.
The U.S. dollar rose to 157.99 Japanese yen from 157.93 yen. The
euro rose to $1.1626 from $1.1581.
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