Today’s Outlook:
• US MARKET : The S&P 500 fell 2.1%, the NASDAQ dropped 2.4%, and the Dow Jones slid 1.8%. Wall Street sold off sharply on Tuesday after a long weekend, driven by rising geopolitical tensions surrounding Greenland.
Market pressure stemmed from President Trump’s threat to impose tariffs of up to 25% on eight European countries until an agreement is reached allowing the U.S. to acquire Greenland—an ultimatum firmly rejected by Europe. Uncertainty deepened as Trump did not rule out military action, keeping markets on edge following earlier U.S. intervention in Venezuela.
France and Germany urged the EU to prepare economic countermeasures, including potential restrictions on investment and the financial sector. Meanwhile, markets are also awaiting a U.S. Supreme Court ruling on the legality of Trump’s import tariffs, with expectations the decision could go against the policy.
On the corporate front, Netflix shares fell 4.8% despite beating expectations in Q4 earnings, as its Q1 and 2026 guidance disappointed and demand for non-exclusive content weakened.
Additionally, U.S. Treasury Secretary Scott Bessent said Trump could appoint the next Federal Reserve chair as early as next week, adding to policy uncertainty.
• EUROPEAN MARKET : European stocks weakened on Tuesday, extending sharp losses from the previous session amid concerns over the economic impact of new trade tariff threats. Germany’s DAX fell 1.1%, France’s CAC 40 declined 0.6%, and the UK’s FTSE 100 dropped 0.7%.
Market pressure followed President Trump’s threat to raise tariffs on several European countries unless the U.S. is allowed to purchase Greenland. Negative sentiment is expected to persist as U.S. markets reopen after the holiday.
Trump said the issue would be discussed at the World Economic Forum in Davos, but reiterated his demands over Greenland. European leaders strongly rejected the stance and began preparing retaliatory measures, with decisions to be discussed at an emergency EU meeting on Thursday—raising the risk of a broader transatlantic trade dispute.
• ASIAN MARKET : Most Asian stocks fell on Tuesday, extending steep losses from the prior session as investors remained cautious over President Trump’s demands regarding Greenland.
Japanese stocks also declined despite Prime Minister Sanae Takaichi’s announcement that she will dissolve parliament on Friday and hold a snap election in early February—a move that could pave the way for additional fiscal stimulus. The February 8 election will seek voter support for fiscal stimulus, tax cuts, and increased defense spending.
However, concerns over how the spending will be funded triggered a sharp sell-off in Japanese government bonds. The 10-year JGB yield surged above 4%, the highest level in 27 years.
Meanwhile, mainland China markets received only limited support from GDP data showing China met its 5% growth target in 2025, as fourth-quarter growth slowed from the previous quarter.
• COMMODITIES : WTI crude prices fell on Wednesday, pressured by geopolitical tensions and expectations of rising U.S. crude inventories, despite a temporary halt in production at two major oilfields in Kazakhstan.
March WTI fell 79 cents (-1.31%) to USD 59.57 per barrel at 00:08 GMT, after rising 1.51% in the previous session. Brent crude for March had not yet traded on Wednesday, but gained 98 cents (+1.53%) to USD 64.92 in the prior session.
The earlier gains were supported by temporary production halts at Kazakhstan’s Tengiz and Korolev oilfields (an OPEC+ member) and strong China economic data.
• INDONESIA : The JCI closed flat at +0.01% to 9,134.7. Trading was highly volatile amid concerns over potential risk outflows following MSCI’s new policy on free float requirements. Caution is advised given current market volatility, as RSI indicators signal oversold conditions alongside negative divergence, suggesting room for a potential correction. Nonetheless, despite the correction risk, overall momentum in the JCI remains strong enough for narrative-based trading strategies.
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