Morning Bid: Transatlantic tantrum

By Mike Dolan

Jan 20 -

What matters successful U.S. and planetary markets today

By Mike Dolan, Editor-At-Large, Finance and Markets

U.S. President Donald Trump’s tariff threats implicit Greenland are unnerving planetary markets arsenic Wall St returns from Monday’s holiday, with banal futures, Treasuries and the dollar nether unit and safe-haven golden and metallic touching caller all-time highs. The ​moves are contained frankincense far, but the VIX volatility index, the alleged fearfulness gauge, has leapt to its highest constituent of the year, arsenic Transatlantic tensions proceed to rise.

I’ll ‌get into each that and much below.

But first, cheque retired my latest file connected wherefore President Trump's latest tariff menace could beryllium much troublesome for markets this clip round.

And perceive to the latest occurrence of the Morning Bid regular podcast. ‌Subscribe to perceive Reuters journalists sermon the biggest quality successful markets and concern 7 days a week.

Today's Market Minute

* U.S. President Donald Trump's renewed tariff threats against European allies amid rising hostility implicit Greenland person revived speech of the 'Sell America' commercialized that emerged successful the aftermath of his sweeping Liberation Day levies past April.

* The White House threatened to deed French wines and champagnes with 200% tariffs successful an evident effort to cajole French President Emmanuel Macron into joining President Trump’s Board of Peace initiative.

* Canadian Prime Minister Mark Carney is trying to foster a caller planetary trading bid by moving much intimately with China ⁠and inking smaller commercialized deals.

* President Trump's clasp of the lipid manufacture ‌risks turning into an uncomfortable carnivore hug amid his wider propulsion for little vigor prices, argues ROI Energy Columnist Ron Bousso.

* Despite multiplying threats to the satellite order, EU leaders cannot spend to hold agelong overdue economical reforms successful enactment with Mario Draghi's recommendations, argues erstwhile Reuters Senior Editor Mike Peacock.

TRANSATLANTIC ‍TANTRUM

European equities fell implicit 1% connected Tuesday morning, portion Nasdaq and S&P 500 futures besides slipped earlier the bell. And the dollar was nether unit adjacent arsenic the output connected the 10-year U.S. Treasury enactment roseate to 4.265%, marking a four-month high.

Even though the greenback and Treasuries slumped, Trump’s threats lifted request for different accepted safe-havens. Gold surpassed $4,700 per ounce for the archetypal clip connected Tuesday.

So far, today’s enactment looks much similar a ‘sell America’ commercialized alternatively than a axenic risk-off mood. While the absorption of question is clear, ​these moves look to beryllium contained truthful far, with markets inevitably wary of overreacting aft past year’s tariff ructions and climbdowns.