S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico MarketEUR/USD bounced back into the mid-1.16–1.17 range as investors weighed renewed US–EU trade tensions and the potential impact of a Supreme Court ruling on tariff legality. With a NATO rift looming and EU leaders possibly considering one-for-one tariff retaliation, the broader environment remains USD-negative, Danske Bank’s FX analyst Kristoffer Kjær Lomholt reports.
EU may follow China’s playbook on retaliation
“After an initial dip, EUR/USD rebounded back into the mid-1.16-1.17 range as markets digested the reignition of the EU-US trade war. With a potential Supreme Court ruling on tariff legality pending, investors appear reluctant to take large directional positions on the back of the weekend developments.”
“These issues – alongside the emerging risk of a NATO rift – look set to dominate the policy agenda this week. President Trump is scheduled to speak at Davos tomorrow, followed by a meeting of EU leaders on Thursday.”
“A key question is whether European leaders will follow China’s playbook from last year and respond with one-for-one tariff measures to pressure Washington into de-escalation. In our view, the overall backdrop is ultimately USD-negative.”
