Japanese Markets Rally, Yen Shifts as Investors Digest Snap Election Outcome
Wednesday 11 February 2026
Global Markets Retreat as Trump Tariff Threat Lifts Gold, Pressures Oil
Markets turned risk-off on Monday, 19 January 2026, as U.S. President Donald Trump’s renewed tariff threats on key U.S. allies over the Greenland dispute rattled investors. Safe-haven assets like Gold held near record highs, while oil prices steadied amid concerns about surpluses and geopolitical tensions.
TL;DR
Trump threatens tariffs on the EU, UK, and Canada over the Greenland dispute.
Global equity futures fall; S&P 500, Dow, NASDAQ down over 1%.
Gold soared to near record levels.
Oil prices hold steady near $78–$82 on a mixed demand/supply outlook.
Key Developments
US Stock Futures Fall
U.S. stock futures fell early Monday after President Trump threatened sweeping new tariffs on allies, including the EU, Canada, and the UK. The proposed tariffs, part of Trump’s efforts to pressure Denmark into selling Greenland, stoked fears of a broader trade conflict, prompting a global retreat in equities.
Futures on the Dow Jones Industrial Average, S&P 500, and NASDAQ 100 were all down more than 1% ahead of Tuesday’s full market reopening.
Gold Prices Rise
Meanwhile, gold prices rose above $4,700 per ounce, as traders continued to favour the metal amid rising geopolitical tension and supported by safe-haven demand and dovish expectations for global interest rates.
The latest market stress was triggered by the Trump administration's abrupt reversal of its Greenland policy, with President Trump insisting on punitive tariffs unless a purchase agreement is reached. In response, key trading partners warned of reciprocal measures, raising the prospect of a multi-front trade war.
Oil Prices Stabilise
Oil prices were relatively stable despite the geopolitical backdrop. Brent crude hovered near $82 per barrel, while WTI crude settled around $78. Investors weighed the risk of demand disruption against signs of increasing supply. According to traders, OPEC+ output remains steady, and inventories are above seasonal averages in some regions.
More Swings to Keep in Mind: Natural Gas Soars
Beyond the preceding points, market participants should monitor the recent surge in natural gas price volatility. Specifically, US natural gas prices rebounded significantly yesterday, January 19, 2026, from a 13-week low, driven by weather forecasts anticipating a period of colder-than-normal temperatures. (Source: The Economic Times)
Conclusion
With markets bracing for a possible global trade escalation, investors continued to shift towards safer assets. Gold soared, oil held steady, and equity futures reflected growing concern. Market participants will closely watch for diplomatic developments and any retaliatory trade measures in the coming days.
*Past performance does not reflect future results. The above is for marketing and general informational purposes only, and are only projections and should not be taken as investment research, investment advice or a personal recommendation.
FAQs
Why are gold prices soaring?
Gold is benefiting from safe-haven demand amid heightened geopolitical tensions, particularly due to trade threats and uncertainty around U.S. foreign policy.
What caused the stock market to drop?
Markets fell after President Trump threatened new tariffs on major U.S. allies over the Greenland dispute, raising fears of an expanded trade conflict.
How are oil prices responding to current events?
Oil prices are steady as markets weigh rising supply against the possibility of weaker demand caused by geopolitical stress.
