January 19th, 2026

 Global markets took a cautious tone on Monday as geopolitical tensions and renewed trade‑war fears weighed on investor sentiment. European equities slipped, and Asian stocks generally followed suit, while traditional safe-haven assets like gold and silver rallied to fresh highs. With U.S. cash markets closed for Martin Luther King Jr. Day, most of the day’s moves reflected risk aversion and uncertainty rather than domestic economic data. 

• European stocks (STOXX 600, CAC 40, DAX): down ~1 % or more
   
• Precious metals (gold, silver): hit record or near‑record highs
   
• Asian equities (Nikkei, Hang Seng): generally weaker
   
• Oil prices: modest moves but subdued overall
   
• Currencies (CHF, JPY): strengthened as safe havens
   
• U.S. equities (futures): pointed lower for Tuesday’s open
   

• European stocks fell after tariff threats
The most visible market driver was U.S. President Trump’s renewed threat to impose tariffs of 10 %–25 % on goods from several European countries unless they support a deal on Greenland. That escalation rattled investors, particularly in Europe, where major indices like France’s CAC 40 and Germany’s DAX slid. Financial markets interpret trade escalations as a risk to manufacturing output and corporate earnings, so broad selling emerged in sectors most exposed to global trade. 

• Safe havens rallied as uncertainty rose
When risk assets weaken, investors often shift toward assets perceived as safer stores of value. On Monday, gold and silver jumped to new highs as traders sought protection from the uncertainty created by trade tensions and political strife. Precious metals typically benefit from this flight‑to‑safety behavior, especially when there’s a lack of supportive economic news to calm markets. 

• Asian markets softened on external cues
Asian equities including Japan’s Nikkei and Hong Kong’s Hang Seng  generally trended down as they digested weaker signals from Europe and anticipation of how global trade dynamics might evolve. With the U.S. market closed, Asia was more sensitive to overnight news flows and global risk sentiment. 

• U.S. dollar and safe currencies behaved defensively
Currencies like the Swiss franc and Japanese yen strengthened relative to the U.S. dollar, while overall dollar demand eased slightly amid the risk‑off mood. Currencies often act as barometers of global risk tolerance, so appreciating safe havens signal that traders were less inclined to hold riskier assets. 

Risk sentiment is fragile when political uncertainty rises. Trade policy can influence markets even when no direct economic data is released, simply because investors are pricing in the possibility of slower growth or disrupted supply chains. Safe‑haven demand can propel alternative assets. Gold and silver don’t generate earnings, but they often rally when traders feel unsettled not because something is broken, but because they want a buffer while they digest news.