Photo by Teng Yuhong on Unsplash
 

On Friday, US stock markets generally ended the session without a clear direction amid mixed geopolitical signals, uncertainty surrounding future Federal Reserve policy, and the start of the fourth-quarter earnings season. By Friday’s close, the Dow Jones (US30) declined by 0.17% (-0.28% for the week). The S&P 500 (US500) shed 0.06% (-0.06% for the week). The tech-heavy Nasdaq (US100) closed 0.07% lower (-0.34% for the week). Investors also assessed political news: President Donald Trump signaled that he might keep economic advisor Kevin Hassett in his current role rather than nominating him as Fed Chair, fueling speculation that former Fed Governor Kevin Warsh could be the frontrunner for the position.

Equity markets in Europe mostly fell on Friday. Germany’s DAX (DE40) fell by 0.22% (+0.19% for the week), France’s CAC 40 (FR40) closed down 0.65% (-1.00% for the week), Spain’s IBEX 35 (ES35) gained 0.39% (+0.94% for the week), and the UK’s FTSE 100 (UK100) closed at negative 0.04% (+1.09% for the week). Attention was also on macroeconomic data: German inflation in December 2025 was confirmed at 1.8%, dropping from 2.3% in November and falling below the ECB’s 2% target for the first time since September 2024.

European stock markets opened sharply lower on Monday following the escalation of trade risks after US President Donald Trump’s statements regarding potential new tariffs on goods from eight European countries. The measure is viewed as a leverage tool to pressure these nations into supporting the Greenland acquisition plan. According to Trump, NATO allies opposing the plan, including Denmark, Norway, Sweden, Finland, Germany, the UK, France, and the Netherlands, could face 10% tariffs as early as February 1, rising to 25% in June if no agreement is reached. In response, European leaders have begun discussing potential countermeasures, including reviving last year’s initiatives to impose tariffs on American goods, while French President Emmanuel Macron reportedly called for the activation of the EU’s anti-coercion instrument.

On Friday, silver (XAG) fell by more than 4%, dropping below $88.7 per ounce, continuing a sharp decline following high volatility in the previous session as the US decision to refrain from imposing tariffs on critical minerals removed a key market driver. Earlier in the week, threats of potential US import tariffs triggered a rapid rally in commodities: silver and other metals hit record levels as traders rushed to direct shipments to the US before potential restrictions took effect.

WTI crude oil prices traded near $59.3 per barrel on Monday following a fourth consecutive week of gains, as the market entered a consolidation phase amid easing geopolitical tensions surrounding Iran. Supply disruption concerns moderated after US President Donald Trump suggested a potential delay in military action last week, following Tehran’s pledge to halt the execution of protesters. However, renewed trade conflict risks remain a significant source of uncertainty for global energy demand. Over the weekend, the US President announced plans to impose 10% tariffs on goods from eight European countries effective February 1, with the potential to increase the rate to 25% by June, absent an agreement on the “purchase of Greenland.” These developments have intensified fears of a global economic slowdown and subsequent downward pressure on oil demand.

Asian markets traded with mixed results last week. Japan’s Nikkei 225 (JP225) rose by 5.00%, the FTSE China A50 (CHA50) fell by 1.54%, Hong Kong’s Hang Seng (HK50) gained 1.77%, and Australia’s ASX 200 (AU200) showed a 5-day positive result of 1.95%.

On Monday, the offshore yuan strengthened to approximately 6.96 per dollar, reaching a 32-month high supported by the People’s Bank of China (PBoC), which set its strongest daily fixing in over two years. This factor outweighed mixed economic data: China’s Q4 GDP growth slowed to 4.5% from 4.8% in Q3, the weakest pace in nearly three years, yet still exceeded market expectations of 4.4%. For the full year, the economy grew by 5%, meeting the government’s target and matching 2024 growth rates, largely due to a record trade surplus as robust exports to non-US markets offset pressure from American tariffs. Meanwhile, December statistics pointed to weakening domestic consumption and an accelerating decline in investment, while industrial production showed improvement.

• S&P 500 (US500) 6,940.01 −4.46 (−0.064%)
• Dow Jones (US30) 49,359.33 −83.11 (−0.17%)
• 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: 2026.01.19

• China GDP (m/m) at 04:00 (GMT+2); – CHA50, HK50 (MED)
• China Industrial Production (m/m) at 04:00 (GMT+2); – CHA50, HK50 (LOW)
• China Retail Sales (m/m) at 04:00 (GMT+2); – CHA50, HK50 (MED)
• China Unemployment Rate (m/m) at 04:00 (GMT+2); – CHA50, HK50 (MED)
• Eurozone Inflation Rate (m/m) at 12:00 (GMT+2); – EUR (MED)
• Canada Inflation Rate (m/m) at 15:30 (GMT+2); – CAD (HIGH)
• Canada BoC Business Outlook Survey (m/m) at 17:30 (GMT+2). – CAD (LOW)

More By This Author:

Oil Tumbles 5%; Tech Rally Pushes US Stocks Higher
Natural Gas Prices Plunge Over 10%
Trump Announces 25% Tariffs On Countries Trading With Iran