US futures
Dow futures 0.25%, S&P futures 0.3% & Nasdaq futures 0.27%
In Europe
FTSE 0.17% & DAX -0.64%
- Stocks rise modestly as Trump speaks
- Trump still pushes for Greenland, but with a slightly softer tone
- Gold still trades 2% higher as investors remain cautious
- Oil rises modestly after force majeure in Kazakhstan
Trump pushes for negotiations for Greenland
US stocks are set to open modestly higher, steadying after yesterday’s declines, as investors watch President Trump’s speech in Davos for clues on what comes next in his plans for control of Greenland.
US stocks closed 2% lower yesterday, marking the worst selloff in 3 months, as investors sold riskier assets, including US assets, in favour of safe havens after Trump threatened trade tariffs on European allies until the US is allowed to buy Greenland.
Today, futures are rising modestly even as Trump intensified his push for Greenland, arguing that only the US can guarantee the Arctic island’s security, calling for immediate negotiations on a potential acquisition.
However, his tone was slightly more conciliatory as he pushed for US control of Greenland. He said he would not use excessive force to get Greenland, which brought some relief. The prospect of a diplomatic resolution is still on the table, but so are trade tariffs.
In short, Trump still sounds determined to take Greenland but won’t use military force to take it. Trump wants talks to start immediately to find a solution.
US stocks are rising, and safe havens have given back some gains. However, Gold is still trading 2% higher, suggesting investors remain cautious.
Corporate news
Netflix is slumping 7.5% after the streaming giant posted revenue of $12.1 billion but underwhelmed with its financial guidance, and amid a bidding war for Hollywood’s Warner Bros Discovery.
United Airlines is juping 3.5% after the airline beat Q4 profit expectations and issued an upbeat outlook for the current quarter and the full year, boosted by strong demand from high-income corporate travellers.
Johnson & Johnson is falling 1% despite forecasting 2026 sales and profits ahead of expectations. The pharma giant added that it expects a hit of hundreds of millions of dollars from a drug pricing deal reached with the US government.
Dow Jones forecast – technical analysis.
The Dow Jones has rebounded lower from the record high of 49,680, dropping for a third straight session and testing support at 48,400, the 2025 high. The RSI is below 50, supporting further declines. Sellers will look to break below 48,400 to bring the 48,000 support zone into focus: the 50 SMA, the rising trendline support and the round number. A break below here creates a lower low and opens the door to a steeper selloff. Any recovery would need to rise above 48,800 to bring 49,680 back into focus and fresh record highs.
FX markets – USD falls, GBP/USD falls
The U.S. dollar is falling, extending yesterday's declines to a two-week low as attention turns to Trump at Davos. Investors are selling out of the USD as the sell America trade continues today. The USD is falling despite being a safe-haven currency, while the riskier AUS is outperforming.
EUR/USD is unchanged as investors look to Davos. The EU-US trade deal agreed last summer is in limbo as the EU reportedly plans to suspend approval, marking another escalation in tensions between the US and Europe. An announcement is expected today.
GBP/USD is falling despite December UK inflation data coming in hotter than expected. CPI rose 3.4% year on year, up from 3.2% in November. Competing forecasts of 3.3% core inflation remained unchanged at 3.2%. However, the rise in CPI was caused by one-offs and service-sector inflation, which the BoE closely watches, was weaker than expected at 4.5%. The market left BoE rate cut expectations unchanged, with a 25-basis-point rate cut priced in and a 70% chance of another.
Oil holds steady amid Trump’s tariff threats.
Oil prices are rising. Investors weigh a temporary shutdown of two large oil fields in Kazakhstan, expectations of a build in US crude oil inventories, and look to Trump’s speech in Davos.
Contracts rose 1.5% in the previous session, extending those gains today after OPEC producer Kazakhstan paused output in Tengiz and Korolev oil fields due to power distribution issues. Oil production here could be halted for another week to 10 days, raising concerns over oil supply.
However, Trump's comments that there is no going back on his goal to control Greenland are limiting the upside in oil prices. The prospect of trade tariffs slowing economic growth is negative for the oil demand outlook and could limit the upside. In addition, oil markets are also watching crude oil inventories data, which are expected to rise by 1.7 million barrels in the week ending January 16th.
