World markets jolted, dollar dips as Trump vows – Money News
By Karin Strohecker, Dhara Ranasinghe and Samuel Indyk
LONDON, Jan 19 (Reuters) – Global markets are going through volatility after President Donald Trump vowed to slap tariffs on eight European nations till the U.S. is allowed to buy Greenland, injecting contemporary commerce uncertainty as shares slid and the dollar broadly weakened.
Trump mentioned he would impose an further 10% import tariff from February 1 on items from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Britain, which is able to rise to 25% on June 1 if no deal is reached.
Major European Union states decried the tariff threats over Greenland as blackmail on Sunday. France proposed responding with a vary of beforehand untested financial countermeasures.
The euro firmed 0.26% to $1.1628 after it initially dropped to its lowest since November as buyers offered off the dollar broadly, lifting different main rival currencies.
In European markets, EUROSTOXX 50 futures and DAX futures each fell 1.1%. Japan’s Nikkei dropped 1% as risk-off sentiment prevailed.
“Hopes that the tariff situation has calmed down for this year have been dashed for now – and we find ourselves in the same situation as last spring,” mentioned Berenberg chief economist Holger Schmieding.
Trump’s sweeping “Liberation Day” tariffs in April 2025 despatched shockwaves by means of markets. Investors then largely seemed previous U.S. commerce threats within the second half of the 12 months, viewing them as noise and responding with aid as Trump made offers with Britain, the EU and others.
While that lull may be over, market strikes on Monday could possibly be dampened by the expertise that investor sentiment had been more resilient than anticipated in 2025 and international financial growth stayed on observe.
U.S. markets are closed on Monday for Martin Luther King Jr. Day, which suggests a delayed response on Wall Street. U.S. stock futures have been 0.7% decrease in early Asian hours. The money Treasury market was shut, however 10-year futures firmed 1 tick.
The implications for the dollar have been much less clear, though the dollar was broadly decrease on Monday. It stays a protected haven, however might additionally really feel the impression of Washington being on the centre of geopolitical ruptures, as it did final April.
The dollar weak point lifted the protected haven yen and Swiss Franc. Bitcoin, a liquid proxy for risk, fell almost 3% to $92,602.64.
“While you would argue that the tariffs threaten Europe, in fact, it’s actually the dollar that is bearing the brunt of it, because I think markets are pricing in increased political risk premia on the U.S. dollar,” mentioned Khoon Goh, head of Asia analysis at ANZ.
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