Asia-Pacific markets mostly slipped Monday, as investors assessed threats from the Trump administration toward Greenland over the weekend, as well as key economic data from China out Monday. Over the weekend, U.S. President Donald Trump and European leaders exchanged tense rhetoric over the Arctic territory, with Trump threatening tariffs on eight European countries and demanding control of Greenland, which is part of Denmark. European leaders responded by calling the threats “completely wrong” and “unacceptable.” Hong Kong Hang Seng index tumbled 1.05%, and the mainland Chinese CSI 300 fell marginally. Japan’s Nikkei 225 lost 0.97%, leading losses in Asia, while the Topix was down 0.47%. Yields on long term Japanese Government Bonds climbed to fresh records.
The S&P 500 ended Friday just below the flatline and posted a losing week as traders weighed the latest comments made by President Donald Trump related to the Federal Reserve and geopolitics. The broad market index slipped 0.06% and closed at 6,940.01. The Nasdaq Composite inched down 0.06% to settle at 23,515.39. The Dow Jones Industrial Average fell 83.11 points, or 0.17%, to end at 49,359.33. The three major averages hit their session lows after Trump delivered remarks in the White House Friday, in which the president said he’d rather have National Economic Council Director Kevin Hassett stay in his current role and that he might not be chosen to become the next Fed chair.
Gold prices rose more than 1% to above $4,660 per ounce on Monday, reaching a record high as investors flocked to safe-haven assets following President Trump’s announcement of new tariffs on European countries. On Saturday, Trump said he would impose a 10% tariff on goods from eight European nations starting February 1 due their opposition to American control over Greenland. The rate could rise to 25% by June 1 if no agreement is reached on the “complete and total purchase of Greenland." The announcement sparked concerns across Europe, with European leaders expected to hold an emergency meeting in the coming days to discuss possible retaliatory measures, including levies on €93 billion worth of US goods.
WTI crude oil futures slipped to $59.1 per barrel on Monday after recording a fourth weekly gain, as cooling tensions in Iran alleviated concerns over potential supply disruptions. Market anxiety surrounding Iran calmed after President Donald Trump signalled last week that he may delay any military action, following Iran’s pledge not to execute protesters. However, Trump warned that strong measures could still be taken if executions resume, keeping some geopolitical risk premium in the market. Meanwhile, traders are assessing the potential impact of renewed trade tensions on energy demand. Trump announced on Saturday a 10% tariff on goods from eight European countries starting February 1, which could rise to 25% by June unless a deal is reached on the “purchase of Greenland.
China’s economic growth slowed to its weakest pace in nearly three years in the fourth quarter as domestic demand softened, though full-year growth matched Beijing’s target despite growing trade frictions with the U.S. and a prolonged real estate slump. Gross domestic product grew 4.5% in the October-to-December period, data from the National Statistics Bureau showed Monday. That marked a slowdown from 4.8% in the third quarter and was the weakest reading since the first quarter of 2023, when growth also came in at 4.5%. Full-year economic output came in at 5%, meeting the official target of around 5%. Separate December data showed domestic consumption weakened and the investment decline steepened, while manufacturing improved.
Eight NATO members’ goods sent to the U.S. will face escalating tariffs “until such time as a Deal is reached for the Complete and Total purchase of Greenland,” President Donald Trump announced Saturday. The tariffs targeting Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland will start at 10% on Feb. 1, Trump wrote in a Truth Social post. The tariffs will shoot up to 25% on June 1, the president said. The penalties would presumably stack on top of the existing U.S. tariffs already levied on goods from these countries. Tariffs imposed by the U.S. on its allies already average about 15% on goods from the European Union countries in Trump’s crosshairs and roughly 10% on imports from the United Kingdom, with rates varying by sector.
Treasury Secretary Scott Bessent on Sunday said it’s “very unlikely” that the Supreme Court will overturn President Donald Trump’s use of emergency powers to impose tariffs, with a potential decision from the court looming as early as this week. “I believe that it is very unlikely that the Supreme Court will overrule a president’s signature economic policy,” Bessent said on NBC’s “Meet the Press.” “They did not overrule Obamacare, I believe that the Supreme Court does not want to create chaos.” In June, the Supreme Court upheld a key Affordable Care Act provision that set up a panel to recommend preventive care services that insurers must provide at no cost to patients.
Canada and China struck an initial trade deal on Friday that will slash tariffs on electric vehicles and canola, as both nations promised to tear down trade barriers while forging new strategic ties during Prime Minister Mark Carney’s visit. The first Canadian prime minister to visit China since 2017, Carney is seeking to rebuild ties with his country’s second-largest trading partner after the United States following months of diplomatic efforts. Canada will initially allow in up to 49,000 Chinese electric vehicles at a tariff of 6.1% on most-favoured-nation terms, Carney said after talks with Chinese leaders including President Xi Jinping. That compares with the 100% tariff on Chinese electric vehicles imposed under former Prime Minister Justin Trudeau in 2024, following similar U.S. penalties. In 2023, China exported 41,678 EVs to Canada.
An Israeli ministerial committee on Sunday approved a law that would allow shared ride hailing services such as Uber and Lyft to operate in Israel in a bid to lower taxi costs. Under a reform promoted by the Transportation Ministry, the law - which still needs full parliamentary approval - would regulate and enable "technology-based transportation operators" using models successfully used globally. The ministry noted that the Shared Transportation Law approved by the Ministerial Committee for Legislation would allow companies such as Uber and Lyft to offer services via smart applications that connect private drivers with passengers. The move, it said, is expected to significantly boost transportation supply, improve service availability during peak times and on weekends and lead to lower fares.
Elon Musk on Friday called Ryanair CEO Michael O’Leary an "utter idiot" who should be fired, escalating a public spat that began after the airline boss ruled out installing Musk’s Starlink internet service on Ryanair aircraft. O’Leary on Wednesday dismissed the idea of equipping any of Ryanair’s more than 600 jets with Musk’s Starlink, citing the impact of fuel costs from drag caused by the antenna and estimating the service would cost the airlines up to $250 million a year. Musk responded on his social media platform X, saying that O’Leary was "misinformed" and arguing that Ryanair did not know how to measure the fuel impact of Starlink equipment. Speaking later to Irish radio station Newstalk, O’Leary said Musk knew “zero” about aviation and drag, calling the U.S. billionaire an “idiot” and describing X as a “cesspit.” Musk, whose company SpaceX operates Starlink, fired back on Friday.
Walmart named long-time executive David Guggina as the CEO of its U.S. division on Friday, succeeding John Furner, who will take over as the chief of the retail behemoth at the end of the month. The retailer had announced in November that CEO Doug McMillon would step down and be succeeded by Furner. Guggina, currently the chief e-commerce officer of Walmart U.S., has held several roles during his nearly eight years at the retailer, including executive vice president of supply chain operations for Walmart U.S. The retailer also named Chris Nicholas as the international division CEO, following Kathryn McLay’s departure, which was announced on Thursday. Nicholas, currently the CEO of Walmart-owned Sam’s Club, will be replaced by executive Latriece Watkins. The company also promoted Seth Dallaire to chief growth officer, following his tenure in the same role within the U.S. division.
AST SpaceMobile stock rose over 14% Friday after the company was awarded a prime contract position on the U.S. Missile Defence Agency’s SHIELD program. The space-based cellular broadband network developer will now be eligible to compete for future task orders under the Missile Defence Agency’s multi-award framework. The SHIELD program is part of the broader Golden Dome strategy focused on building resilient, layered protection against various threats. "Being selected as a prime contract awardee for the MDA’s SHIELD program is a major validation of our unique, on-orbit, dual-use technology and our growing capabilities within the defence sector," said Chris Ivory, Chief Commercial Officer.