The European premarket opens lower. Tariff rhetoric escalates. Rick Rieder’s bid for Fed chair gains momentum.

On Monday, market attention will be focused on several key economic events from Switzerland, Canada, and the United Kingdom. The day begins with the annual meeting of the World Economic Forum in Switzerland, which traditionally brings together leading politicians, central bankers, and business leaders and may provide guidance on global economic prospects.

Later in the day, Canada will release its December inflation data. Monthly core consumer price growth is expected to be negative, while annual inflation is seen remaining close to 3%. Headline CPI is also expected to show a monthly decline, which could influence expectations for future Bank of Canada policy.

In the afternoon, the United Kingdom will publish the NIESR monthly GDP tracker, offering an early indication of economic activity in December. The day will conclude with the release of the Bank of Canada’s Business Outlook Survey, an important gauge of business sentiment and future economic conditions.

The United States is observing a public holiday.

Link to the calendar here:
https://calendar.varchevbrokers.com/calendar.php?lang=bg

Top 5 things to know before the European open

• European and U.S. equity futures are declining, while gold and silver are rising to record highs amid escalating tensions surrounding President Donald Trump’s stated intention to take control of Greenland. Increased demand for safe-haven assets is weakening the U.S. dollar against all G-10 currencies, while bitcoin is falling. Asian markets remain mostly stable. Spot trading in U.S. Treasuries is suspended due to a U.S. public holiday.
• The European Union is in talks over the potential imposition of tariffs on U.S. goods worth €93 billion if Washington proceeds with its threat to introduce 10% tariffs on European countries starting February 1. EU leaders are planning an emergency meeting in Brussels later this week to discuss possible countermeasures.
• Meanwhile, the candidacy of BlackRock’s Rick Rieder for the next chair of the Federal Reserve is gaining momentum, according to sources familiar with the process. The race is now shaping up as a four-way contest, including National Economic Council Director Kevin Hassett, Fed Governor Christopher Waller, and former Fed Governor Kevin Warsh.
• China’s economy lost further momentum in the final quarter, despite meeting the government’s 2025 target. Growth slowed to 4.5% year on year in the fourth quarter, the weakest pace since the end of the Covid lockdowns in 2022.
• Micron Technology warns that shortages in memory chips have accelerated over the past quarter and are likely to persist beyond the end of the current year.

European and U.S. equity futures are falling, while safe-haven assets such as gold are gaining, after President Donald Trump proposed new tariffs against eight countries opposing his plans to acquire Greenland. The U.S. dollar is weakening against most major currencies.

Futures on European equity indices are down about 1.1%, while S&P 500 futures are falling 0.9%, as tariff-related concerns weigh on markets. Asian equities are trimming earlier losses and trading without a clear direction, while South Korea, often seen as a proxy for investment in artificial intelligence, is up 1.3%.

Safe-haven demand is pushing gold up 1.6% to $4,670 per ounce, while silver is rising 3.3%, with both metals reaching record highs. Bitcoin and other cryptocurrencies are declining. The euro has reversed earlier losses and moved into positive territory, while futures on U.S., German, and French government bonds are higher. There is no spot trading in U.S. Treasuries on Monday due to the U.S. holiday.

Tariff concerns are resurfacing at a time when risk appetite has been supported by resilient corporate earnings and continued investment linked to artificial intelligence. Trump’s renewed threats are testing equity markets that are trading near record highs after a strong AI-led recovery.

“The threat of tariffs against NATO partners adds a new layer of uncertainty to global trade and keeps markets on edge,” said Tim Waterer, chief market analyst at KCM Trade. “Traders are adopting a cautious stance, at least until developments over the week become clearer.”

President Donald Trump announced on Saturday the introduction of a 10% tariff from February 1 on goods from European countries that have backed Greenland amid U.S. threats to take control of the semi-autonomous Danish territory. He said tariffs would rise to 25% in June if no “deal for the full and complete purchase of Greenland” is reached.

The measures cover Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland. The decision triggered immediate reactions from European leaders, who are preparing to block the approval of the trade agreement negotiated last year. According to Bloomberg, French President Emmanuel Macron may seek to activate the EU’s anti-coercion instrument, the bloc’s most powerful mechanism for retaliation.

“The outcome of these new trade tensions remains unclear, but it has long been evident that certainty around trade and tariffs no longer exists,” said analysts including Carsten Brzeski, global head of macro at ING Bank. “What is clear, however, is that a full-scale trade war between the EU and the U.S. would leave only losers.”

Trump’s threats increase the likelihood that European governments may begin reducing their exposure to U.S. assets, which would support the euro, according to George Saravelos, global head of FX research at Deutsche Bank. Europe remains the largest creditor to the United States, with European countries holding around $8 trillion in U.S. bonds and equities, nearly double the holdings of the rest of the world combined.