London, January 18, 2026, 17:03 GMT — The market has closed.
- Trump renewed trade-war tensions by threatening new tariffs on eight European countries connected to Greenland.
- Wall Street finished Friday nearly flat, with the S&P 500 settling at 6,940.01.
- With holiday liquidity drying up, investors are turning their attention to a busy earnings calendar alongside critical U.S. court rulings and Fed announcements.
Global stock markets are bracing for volatility this week after President Donald Trump threatened new tariffs on eight European countries if the U.S. isn’t allowed to buy Greenland. He announced a 10% import tariff starting Feb. 1, set to jump to 25% on June 1 unless a deal is struck. The tariffs would hit Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and Britain.
Major equity benchmarks remain near their highs, with investors relying heavily on earnings to back current valuations. That leaves little margin for error. Tariffs usually bring ripple effects—retaliation, slower trade, and a further blow to already-fragile confidence.
The calendar isn’t offering much relief. U.S. markets will be closed Monday for Martin Luther King Jr. Day. Then, throughout the week, earnings from Netflix, Johnson & Johnson, and Intel are set to dominate. On top of that, the U.S. Supreme Court is set to hear President Trump’s bid to remove Federal Reserve Governor Lisa Cook. “Earnings actually carry the news cycle,” said Art Hogan, chief market strategist at B Riley Wealth. Reuters
Stocks ended the week cautiously. The Dow dipped 0.17% Friday, the S&P 500 eased 0.06%, and the Nasdaq fell 0.06%, all posting slight weekly losses. Treasury yields ticked up and the dollar remained steady. Anthony Saglimbene, chief market strategist at Ameriprise Financial, called the markets “flat-lining” ahead of upcoming earnings. Reuters
Europe’s STOXX 600 closed Friday flat at 614.38 points, marking its fifth consecutive weekly rise. Luxury stocks took a hit, led by Richemont which fell after a Bank of America downgrade. Meanwhile, Novo Nordisk surged amid renewed interest in Wegovy. Michael Field, Morningstar’s chief European equity strategist, cautioned that “the margin of safety that investors had previously is gone.” Reuters
Asia kicked off the day on edge. China’s securities regulator promised stricter oversight as the Shanghai Composite hovered close to a decade peak. Chinese exchanges also announced they will raise the minimum margin requirement for new loans from 80% to 100% starting Jan. 19, a step designed to temper the rapidly moving market.
Volatility is under scrutiny following Friday’s monthly options expiration, which some traders believe has kept the benchmark index stuck near the 7,000 mark. Options give investors the right to buy or sell at a set price by a certain date. After large expirations, market movements can intensify as hedges unwind. “Start moving around a bit more,” said Brent Kochuba, founder of SpotGamma. Reuters
The downside is clear: tariff threats turn into reality, and Europe strikes back fast, dragging stocks into a broader trade conflict just as investors fret over Fed leadership and central bank independence. With the U.S. holiday thinning liquidity early in the week, initial moves may appear more dramatic than they actually are.
Asia’s open on Monday will give the initial market cue, as traders focus on the euro, European risk proxies, and any official statements from European capitals. Then eyes turn to Netflix earnings on Tuesday and the Supreme Court hearing Wednesday. The Feb. 1 tariff deadline looms quietly in the background.
