US imposes tariffs on Greenland; Europe retaliates; Trump leads large delegation to Davos.

Trump Imposes Tariffs on Eight European Countries Over Greenland

On January 17, U.S. President Donald Trump announced via social media that starting February 1, Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland will face a 10% tariff on all goods exported to the U.S. due to the Greenland issue. This tariff will increase to 25% by June 1 and will remain until an agreement on the "complete purchase of Greenland" is reached. Trump stated that these countries have "all gone to Greenland for unclear purposes" and emphasized the need for strong measures to protect global peace and security.

As a result, gold prices surged past $4,690 per ounce, reaching a historic high, while silver prices rose over 4%, exceeding $94 per ounce.

EU's Response to U.S. Tariffs

In response, the eight European countries issued a joint statement expressing that the threat of tariffs undermines transatlantic relations and could lead to a dangerous cycle. Additionally, the EU is considering imposing tariffs on €93 billion worth of goods imported from the U.S. or restricting U.S. companies' access to the EU market as retaliation.

U.S. Commerce Secretary's Warning to Chip Manufacturers

On January 16, U.S. Commerce Secretary Gina Raimondo warned South Korean memory chip manufacturers that they must either increase production in the U.S. or face tariffs of up to 100%. This statement has drawn significant media attention in South Korea.

Fed Chair Candidates Narrowed Down

U.S. Treasury Secretary Janet Yellen indicated that the list of candidates for the Federal Reserve Chair has been narrowed to four, with a decision expected before or after the upcoming Davos meeting.

Fed's Bowman on Interest Rates

Michelle Bowman, Vice Chair for Supervision at the Federal Reserve, stated that the Fed should be prepared to cut interest rates again if the labor market weakens. She emphasized the need for flexibility in monetary policy.

Davos World Economic Forum

The World Economic Forum will take place from January 19 to 23 in Davos, Switzerland, with President Trump leading a record-sized U.S. delegation. The forum will focus on global cooperation amid increasing competition, with discussions likely to include Trump's tariff policies and the Greenland acquisition.

U.S. Stock Market Update

On January 16, U.S. markets were closed for Martin Luther King Jr. Day. The previous trading day saw the Dow Jones down 0.17%, the Nasdaq down 0.06%, and the S&P 500 down 0.06%. Notable tech stocks showed mixed results, with Microsoft up 0.7% and Apple down 1.04%.

Notable Stock Movements

Micron Technology's stock surged 7.8%, reaching a historic high with a market cap exceeding $400 billion, following the announcement of a $100 billion memory manufacturing facility.

Novo Nordisk's shares rose over 9% due to strong early prescription data for its new obesity treatment.

ASML also reached a historic high, becoming the third European company to surpass a $500 billion market cap.

Hong Kong Market Activity

On January 16, southbound funds net bought HK$1.1 billion in SMIC and HK$900 million in Xiaomi, while selling nearly HK$1.1 billion in China Mobile.