Financial Markets Daily Report
20 enero 2026
European investors began the week with a risk-off tone, as US markets were closed for the Martin Luther King holiday. Sentiment deteriorated after Trump announced plans to impose new tariffs on European countries siding with Denmark in the Greenland dispute and the EU hinted at possible retaliation.
European sovereign curves steepened, with short-end yields declining as markets priced in a very slight monetary easing by the ECB in the upcoming months in this context. Peripheral spreads were mixed: French spreads narrowed after PM Lecornu signaled the intention to approve the draft budget without parliamentary approval, invoking Article 49 of the Constitution.
European equity indices fell. The euro strengthened against the dollar but weakened against the Swiss franc, which acted as a safe haven. In commodities, gold extended its gains, while European natural gas prices dropped after last week’s sharp rally, a move likely to attract additional LNG cargoes and boost supply.