FX.co ★ US Futures Slump on Trade Tensions

On Tuesday, U.S. stock futures experienced a decline as Wall Street resumed activities following the extended holiday weekend. This downturn was influenced by President Donald Trump's recent threat to introduce new tariffs on European nations that oppose his intention to acquire Greenland. Trump cautioned that eight NATO countries—Denmark, Norway, Sweden, Finland, Germany, the UK, France, and the Netherlands—could be subjected to a 10% tariff starting February 1, which might escalate to 25% by June 1, if a Greenland purchase agreement fails to materialize. European leaders denounced these statements as unacceptable and are currently evaluating their options for a potential counter-response. Consequently, shares of European automobile and luxury goods companies declined on Monday, while some defense stocks saw gains. In the U.S., the focus this week shifts to the fourth quarter earnings season, with expected reports from Netflix, Charles Schwab, Johnson & Johnson, Intel, and Visa, among others.