Dow Futures decline following President Donald Trump’s suggestion of employing tariffs in his pursuit of acquiring Greenland. European leaders are deliberating potential retaliatory measures in response to the duties, which they have characterized as a form of blackmail. reaches a new record high while oil experiences a decline as traders assess Trump’s remarks and the European Union’s reaction. In other developments, China’s economic growth decelerates in the fourth quarter, yet still achieves Beijing’s target for 2025.

Dow futures indicated a downward trend on Monday, as investors evaluated President Trump’s ultimatum regarding the imposition of tariffs on various European nations until the U.S. is permitted to acquire Greenland. By 03:05, the Dow futures contract had decreased by 404 points, or 0.8%, while futures had declined by 66 points, or 1.0%, and futures had fallen by 336 points, or 1.3%. The primary indices will be closed on Monday in observance of Martin Luther King, Jr. Day, thereby postponing the markets’ response to Trump’s most recent tariff announcement. Global risk-off sentiment has been evident, leading to declines in share prices across Europe and Asia. In a note, analysts indicated that Trump’s statement, following the president’s imposition of extensive tariffs on various countries last year, has intensified trade tensions into “an entirely new dimension — one driven less by economic logic and more by political motives.” “The experience of the past 12 months has taught us not to overreact, as not all bold or dramatic announcements have ultimately been implemented.” “The uncomfortable truth, however, is that some of them have,” stated the analysts, including Carsten Brzeski and Bert Colijn.

European leaders reached a consensus on Sunday to intensify their strategies in response to Trump’s tariffs, with indications that EU officials are contemplating the implementation of stringent retaliatory measures if the levies are enacted. On Saturday, Trump announced the imposition of 10% tariffs on eight EU members: Denmark, Sweden, France, Germany, the Netherlands, Finland, Norway, and the United Kingdom, until the U.S. secures the opportunity to purchase Greenland. Should the U.S. fail to acquire the substantial semi-autonomous Danish territory, Trump indicated that the tariffs would rise to 25%. Trump has contended that the acquisition of Greenland is essential for national security, while European nations have characterized the assertion as a form of blackmail. In anticipation of an emergency summit set for Thursday in Brussels, EU nations are said to be gearing up to deliberate on various responses, including a tariff package affecting 93 billion euros worth of U.S. imports. Another is the so-called “Anti-Coercion Tool,” which may restrict the U.S.’s access to investment, banking activities, and trade in services. According to a source indicated that the initial option has thus far received greater backing. Importantly, Trump’s newly proposed tariffs raise significant concerns regarding the viability of the trade agreement established between Washington and the EU in the previous year. EU officials have now indicated that they are unable to endorse the agreement concerning Trump’s efforts to acquire Greenland. “At this point, the outcome of these new trade tensions is unclear, but what has long been evident is that there is no such thing as trade or tariff certainty anymore,” stated the ING analysts.

Gold prices experienced a significant increase during Asian trading on Monday, nearing $4,700 an ounce, driven by heightened safe-haven demand following Trump’s latest tariff threat. Spot gold increased by 1.6% to $4,667.33 per ounce by 02:26, following a peak of $4,690.75 per ounce earlier in the session. U.S. Gold Futures reached a high of $4,697.71 per ounce. Prices increased by over 4%, reaching a new record high of $94.03 per ounce. The white metal has experienced upward momentum, driven not solely by safe-haven demand but also by its dual function as an industrial metal.

Oil prices declined, relinquishing a portion of the gains accrued in the preceding week as market participants assessed the potential for a trade conflict concerning Greenland. Brent futures declined by 0.1%, settling at $59.74 per barrel, while U.S. West Texas Intermediate crude futures also decreased by 0.1%, reaching $55.95 per barrel. Crude prices experienced an uptick at the beginning of last week, driven by concerns that turmoil in Iran might impede oil supplies from the Middle East, a region that represents a substantial portion of global production. However, a significant portion of that premium diminished following Trump’s announcement regarding the absence of immediate U.S. military intervention, leading to a price pullback before they ultimately stabilized toward the week’s conclusion.

China’s economy exhibited a marginal growth exceeding expectations in the fourth quarter of 2025, as reported on Monday. This performance was bolstered by stimulus measures and a rebound in consumption, enabling the economy to align with Beijing’s annual target. Gross domestic product increased by 4.5% year-on-year in the October-December period, aligning with expectations yet showing a slight decline from the 4.8% recorded in the previous quarter. The growth rate recorded was the lowest in three years. In the latest quarter, the world’s second-largest economy experienced a growth of 1.2%, surpassing the anticipated figure of 1.1%. The report indicated that China’s GDP for 2025 is projected at 5%, aligning with Beijing’s annual target. The government is anticipated to establish a 5% annual GDP target once more, as Beijing navigates increased trade tensions with the U.S., subdued consumer spending, and an enduring housing crisis.