{"id":4626,"date":"2026-01-19T10:20:41","date_gmt":"2026-01-19T04:50:41","guid":{"rendered":"https:\/\/economictimes.lk\/?p=4626"},"modified":"2026-01-19T10:20:43","modified_gmt":"2026-01-19T04:50:43","slug":"stocks-skid-in-asia-dollar-dips-on-trade-war-risk","status":"publish","type":"post","link":"https:\/\/economictimes.lk\/index.php\/2026\/01\/19\/stocks-skid-in-asia-dollar-dips-on-trade-war-risk\/","title":{"rendered":"Stocks skid in Asia, dollar dips on trade war risk"},"content":{"rendered":"\n

Reuters – U.S. stock futures slid on Monday after President Donald Trump<\/a> threatened to slap extra tariffs on eight European nations<\/a> until \u200bthe U.S. is allowed to buy Greenland, pushing the dollar down on the safe-haven yen and Swiss franc.<\/p>\n\n\n\n

Gold and silver both jumped \u200cto all-time highs, while oil slipped on concerns about what an all-out trade war between the U.S. and Europe could mean for global growth and demand.<\/p>\n\n\n\n

A holiday in U.S. equity and bond markets made for thin trading and likely contributed to a 0.7% drop in S&P 500 futures and a 1.0% fall in Nasdaq futures .<\/p>\n\n\n\n

In European markets, EUROSTOXX 50 futures and DAX futures both fell 1.1%. Japan’s Nikkeilost 1.0%, and MSCI’s broadest index of Asia-Pacific shares outside Japandipped 0.1%.<\/p>\n\n\n\n

Trump said he would impose \u200cadditional 10% import levies from February 1 on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Britain, \u200brising to 25% on June 1 if no deal is reached.<\/p>\n\n\n\n

Major European Union states decried the tariff threats over Greenland as blackmail, and France proposed responding with a range of previously untested economic countermeasures.<\/p>\n\n\n\n

The EU’s options include a package of its own tariffs on 93 billion euros ($108 billion) of U.S. imports that was \u200dsuspended for six months in early August and measures under an Anti-Coercion Instrument that could hit U.S. services trade or investments.<\/p>\n\n\n\n

Analysts at Deutsche Bank noted European countries owned $8 trillion of U.S. bonds and equities, almost twice as much as the rest of the world combined, and might consider bringing some of that money back home.<\/p>\n\n\n\n

“With the U.S. net international investment position \u2060at record negative extremes, the mutual interdependence of European-U.S. financial markets has never been higher,” said George Saravelos, Deutsche’s global head of FX research.<\/p>\n\n\n\n

“It is \u200da weaponization of capital rather than trade flows that would by far be the most disruptive to markets.”<\/p>\n\n\n\n

It should also make for a fraught few days atDavos<\/a>as leaders from \u200caround the \u200cworld gather at the World Economic Forum, including a large U.S. group led by Trump himself.<\/p>\n\n\n\n

DOLLAR NO SAFE HAVEN<\/h3>\n\n\n\n

China is expected to report on Monday itseconomy grew 4.4%<\/a>in the quarter to December year-on-year, slowing from 4.8% the previous quarter, as strength in exports and manufacturing is offset by weakness in domestic demand.<\/p>\n\n\n\n

TheBank of Japan<\/a>meets on Friday and, while no rate hike is expected this time, policymakers could flag a tightening as soon as April.<\/p>\n\n\n\n

One added wrinkle is domestic politics given \u2060Japanese Prime Minister Sanae Takaichi is \u2060expected to soon dissolve parliament to \u200ballow for an election in February.<\/p>\n\n\n\n

Delayed data on U.S. core inflation and consumption for November are due on Thursday and will refine investor expectations for when the Federal Reserve might cut again.<\/p>\n\n\n\n

A run of solid economic news at home has seen markets largely give up on an easing before June, with April priced at 65% for no change.<\/p>\n\n\n\n

Earnings \u200dseason continues as banks are joined by a more diverse set of companies, including Netflix Johnson & Johnson General Electric and Intel In currency markets, the euro recovered from an early dip to rise 0.1% to $1.1613 , while sterling clawed its way back up to $1.3387 .<\/p>\n\n\n\n

The dollar eased 0.2% on the Swiss franc to 0.7995 francs , and 0.3% on the yen to 157.70 .<\/p>\n\n\n\n

The cash Treasury market \u200bwas shut, but 10-year futures firmed 3 ticks amid the general search for safety.<\/p>\n\n\n\n

Likewise, gold gained \u200d1.5% to $4,664 an ounce .<\/p>\n\n\n\n

Oil prices eased. There were lingering concerns about a potential U.S. strike on Iran as a U.S. Navy aircraft carrier group was expected to arrive in the Persian Gulf \u200bthis week.<\/p>\n\n\n\n

Brent dropped 0.5% to $63.84 a barrel, while U.S. crude fell 0.4% to $59.18 per barrel.<\/p>\n\n\n\n

($1 = 0.8611 euros)<\/p>\n\n\n\n

Source : Ada Derana Biz <\/p>\n","protected":false},"excerpt":{"rendered":"

Reuters – U.S. stock futures slid on Monday after President Donald Trump threatened to slap extra tariffs…<\/p>\n","protected":false},"author":4,"featured_media":4627,"comment_status":"open","ping_status":"open","sticky":true,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[5],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/economictimes.lk\/index.php\/wp-json\/wp\/v2\/posts\/4626"}],"collection":[{"href":"https:\/\/economictimes.lk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/economictimes.lk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/economictimes.lk\/index.php\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/economictimes.lk\/index.php\/wp-json\/wp\/v2\/comments?post=4626"}],"version-history":[{"count":0,"href":"https:\/\/economictimes.lk\/index.php\/wp-json\/wp\/v2\/posts\/4626\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/economictimes.lk\/index.php\/wp-json\/wp\/v2\/media\/4627"}],"wp:attachment":[{"href":"https:\/\/economictimes.lk\/index.php\/wp-json\/wp\/v2\/media?parent=4626"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/economictimes.lk\/index.php\/wp-json\/wp\/v2\/categories?post=4626"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/economictimes.lk\/index.php\/wp-json\/wp\/v2\/tags?post=4626"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}