By William Collins, consultant in stock markets – Eurasia Business News, January 21, 2025. Article no 2002 – Updated at 12:47 ET
Stock futures are fluctuating in a narrow range as traders wait to see whether U.S. President Trump’s Davos speech will calm or worsen tensions over his push to acquire Greenland. At the same time, gold is surging to fresh records as investors seek safety amid the dispute and broader worries about policy and geopolitical risk.
Market backdrop
U.S. equity futures are slightly higher to flat after Tuesday’s sharp selloff, when the Dow, S&P 500 and Nasdaq had their worst day since October on renewed tariff and Greenland concerns.
Netflix (NFLX) stock fell in premarket trading after the streaming company reported solid quarterly results but gave a muted outlook. The stock fell more than 6% in premarket trading, recently standing below $82 a share. Netflix shares have pulled back in recent months after hitting a record closing high of $133.91 in June.
European stocks are similarly mixed, with investors reluctant to take big positions before Trump’s address at the World Economic Forum in Davos.
The Euro Stoxx 50 (EU50), a key benchmark for the euro area, is down around 0.98% today at 02:00 PM (Brussels time) from the previous session.
The broader STOXX Europe 600 also edged down about 0.78%, reflecting mild risk‑off sentiment across sectors.
Country indexes
French CAC40 falls today by 0.38% at 02:00 PM (Paris time). The day before, the flagship index of the Paris Stock Exchange had lost 0.61%, to 8,062.58 points.
Germany’s DAX (DE40) loses 1%.
Greenland and tariffs
President Trump has linked his bid to buy Greenland with threats of new tariffs on multiple European allies if they refuse to support a transfer of the territory.
European leaders and EU officials have pushed back hard, warning that using tariffs to force a deal over Greenland would damage NATO cohesion and undermine existing and prospective EU‑U.S. trade arrangements.
Davos speech expectations
Trump is scheduled to speak at Davos at 8:30 a.m. ET (2:30 p.m. local time in Davos), with markets watching for any shift from his recent confrontational stance toward a more conciliatory tone on Greenland and trade.
Commentary from Davos suggests that if the speech offers no compromise, investors fear a renewed escalation in tariffs and a deeper rift with Europe, which could prolong equity volatility and support safe‑haven flows.
Trump’s announcement on January 18 specified tariffs on imports from eight European nations—Denmark, Norway, Finland, France, Germany, the Netherlands, and the UK—unless they support U.S. acquisition of Greenland, framing it as a national security imperative against Russia and China. European leaders condemned the move as “blackmail” and are preparing countermeasures, including potential activation of the EU’s “trade bazooka” anti-coercion tool.
Safe havens and commodities
Gold prices have hit record highs above roughly the mid‑$4,800 per ounce area this morning as demand for perceived safe‑haven assets spikes on the Greenland and tariff shock.
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Spot gold was reported around 4,860 USD per ounce, after touching an intraday high close to 4,888 USD per ounce, marking a new record.
Gold prices are solidly higher today but down from the session high that saw another new all-time high overnight. President Trump said at a speech to the World Economic Forum in Davos, Switzerland that he won’t use force to acquire Greenland. That took some of the risk aversion out of the marketplace after Trump had said a couple weeks ago he would not rule out using military force to take Greenland. Silver prices are weaker on profit taking from the shorter-term futures traders. February gold was last up $84.80 at $4,850.30. March silver prices were down $1.036 at $93.59.
U.S. gold futures are helped by safe‑haven demand tied to global tensions and tariff worries.
Silver is “surging alongside gold,” with intraday moves consistent with that mid‑90 USD per ounce zone, though exact fixing levels vary slightly by source and time of day.
Recent daily data show silver spot prices in mid‑January trading near 95 USD per ounce, with gains of roughly 4–5% on strong precious‑metals buying.
Oil prices are weaker, with traders worried that a trade confrontation tied to Greenland could weigh on global growth and thus energy demand.
Supreme Court and Fed independence
Separately, the Supreme Court is preparing to hear a case concerning the Trump administration’s effort to remove Federal Reserve Governor Lisa Cook, a move widely seen as a test of the central bank’s independence.
Legal and market analysts are watching to see whether the Court narrows or expands executive power over independent regulators, which could have implications for how insulated future Fed policy decisions are from political pressure.
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© Copyright 2025 – Eurasia Business News. Article no. 2002
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