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The US stock indices did not trade yesterday due to a bank holiday.

The Canadian dollar (CAD) strengthened above 1.39 against the US dollar. The currency was supported by a weakening US dollar and a mixed but overall moderately positive interpretation of the latest Canadian inflation data. The headline Consumer Price Index (CPI) unexpectedly rose to 2.4% in December, exceeding market expectations and coming in slightly above the Bank of Canada’s (BoC) short-term projections, which had anticipated inflation fluctuations near the 2% target. At the same time, median core inflation fell to a yearly low of 2.5%, indicating a partial easing of underlying price pressures. However, the combination of higher headline inflation and persistent demand reinforced the case for a more cautious approach by the Bank of Canada regarding the timing and pace of potential interest rate cuts.

European equity markets mostly declined on Monday. The German DAX (DE40) dropped by 1.34%, the French CAC 40 (FR40) closed down 1.78%, the Spanish IBEX 35 (ES35) fell by 0.26%, and the British FTSE 100 (UK100) closed at negative 0.39%. The DAX (DE40) slid to its lowest level since January 6, amid deteriorating sentiment in European markets due to the threat of renewed trade tensions between the US and the EU. The US President Donald Trump announced intentions to impose 10% tariffs starting February 1 on all imports from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland, warning that the rate could be increased to 25% in the absence of an agreement on the “full and final purchase of Greenland.” These statements heightened investor fears of trade escalation, especially following reports that the European Union is considering retaliatory measures, including tariffs on US goods worth up to 93 billion euros or restricting US companies’ access to the European market. Against this backdrop, automaker stocks plummeted: shares of BMW, Volkswagen, Daimler Truck, Porsche, and Mercedes-Benz lost up to 3.7%, reflecting the sector’s vulnerability to trade barriers.

The Swiss franc (CHF) strengthened to around 0.798 per US dollar, holding near 2011 highs as escalating geopolitical rhetoric from the US boosted demand for safe-haven assets. The rally was triggered by President Donald Trump’s statements regarding the intent to impose new tariffs on European goods over the Greenland dispute, which increased global market nervousness and supported haven currencies. Investors are also focused on the upcoming World Economic Forum in Davos, starting January 20. Key global central bankers, including Swiss National Bank Chairman Martin Schlegel, are expected to speak. Markets continue to operate on the assumption that the SNB will maintain its key interest rate at 0% for the foreseeable future.

On Tuesday, silver (XAG) traded near $94.5 per ounce, remaining at record-high levels amid rising demand for safe-haven assets due to escalating tensions between the US and Europe. Additional volatility in the silver market in recent sessions was driven by the Trump administration’s decision to forgo tariffs on essential minerals, including silver, which was added to the US critical minerals list last year due to its key role in green energy technology and electronics.
Platinum prices (XPT) declined to approximately $2,340 per ounce but remained near record levels amid increased demand for precious metals as haven assets due to the worsening tensions between the US and Europe. Analysts note that Europe holds approximately $10 trillion in US bonds and stocks, part of which is held in sovereign wealth funds and could potentially be used as leverage in the new trade confrontation. Additional volatility in the platinum market in recent sessions came from Trump’s decision to temporarily hold off on tariffs for key minerals, including platinum, instead instructing the administration to seek alternative suppliers among international trade partners.

The US natural gas prices jumped more than 17% to $3.65 per MMBtu, sharply rebounding from a 13-week low of $3.10 recorded last week. The surge was driven by an intensifying Arctic cold wave sweeping across much of the country. A sudden shift from mild weather prognoses to a scenario of severe and prolonged cold triggered a rapid market re-evaluation as traders began pricing in significantly higher heating fuel demand.

Asian markets declined yesterday. Japan’s Nikkei 225 (JP225) fell by 0.65%, China’s FTSE China A50 (CHA50) dropped 1.13%, Hong Kong’s Hang Seng (HK50) shed 1.05%, and Australia’s ASX 200 (AU200) posted a negative result of 0.33%.

On Tuesday, the offshore yuan stabilized near the 6.96 level per dollar, remaining close to a 32-month high following the Chinese central bank’s decision to leave loan prime rates unchanged. The People’s Bank of China (PBoC) kept the one-year and five-year benchmark rates at 3.0% and 3.5%, respectively, extending the period of policy stability to eight months and confirming a course of targeted economic support rather than broad-based monetary easing.

• S&P 500 (US500) 6,940.01 0 (0%)
• Dow Jones (US30) 49,359.33 0 (0%)
• DAX (DE40) 25,297.13 −55.26 (−0.22%)
• FTSE 100 (UK100) 10,235.29 −3.65 (−0.04%)
• USD Index 99.38 +0.05% (+0.05%)
   

News feed for: 2026.01.20

• China PBoC Loan Prime Rate at 03:15 (GMT+2); – CHA50, HK50 (MED)
• UK Average Earnings Index (m/m) at 09:00 (GMT+2); – GBP (MED)
• UK Claimant Count Change (m/m) at 09:00 (GMT+2); – GBP (MED)
• UK Unemployment Rate (m/m) at 09:00 (GMT+2); – GBP (MED)
• UK BOE Gov Bailey Speaks at 11:45 (GMT+2); – GBP (LOW)
• Eurozone ZEW Economic Sentiment (m/m) at 12:00 (GMT+2); – EUR (LOW)
• Switzerland SNB Chairman Schlegel Speaks at 18:30 (GMT+2). – CHF (LOW)

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