Negative lock in Europe; Gold and silver prices soared to new highs

18:40

European stock markets were locked in the red, following President Trump’s threats of new tariffs on European countries. The Frankfurt Stock Exchange fell by about 1.2%, the Paris Stock Exchange lost its value by about 1.8% and the London Stock Exchange weakened by about 0.4%.

The automotive sector in the STOXX 600 index lost nearly 2% of its value, with declines in the shares of car manufacturers such as Volkswagen , porsche and-BMW . In France, there are declines in the luxury sector, when stocks like Louis Vuitton , Kring , Hermes andMoncler lost altitude.

On the other hand, defense shares in Europe strengthened, with increases in shares such as Rheinmetall , Rank , Thales andLeonardo .

17:05

Trade in Europe continues to decline. The DAX index falls by about 1.1%, the FTSE retreats by about 0.3% and the KAC loses its value by about 1.6%.

The price of silver is now jumping at a rate of 6%, after briefly crossing the $94,000 mark for the first time just an hour ago.

In the crypto market, Bitcoin has weakened by over 2% and its price is now hovering around $92,000. Ethereum also falls by over 3% and its price hovers around $3,200.

15:45

The declines in Europe continue, although these have moderated a little. The DAX index falls by about 0.9%, the FTSE loses its value by about 0.4%, and the KAC falls by about 1.4%.

Gold and silver prices continue to soar, as investors move toward “safe haven” assets. Gold rises by about 1.7% and trades around $4,670 per ounce, while silver rises by about 5.3% and trades around $93.2 per ounce.

13:55

Trade in Europe continues to decline. The DAX index loses its value by about 1.4%, the FTSE drops by about 0.5% and the KAC retreats by about 1.6%.

President Trump’s new tariff threats weigh on the dollar. The dollar index (DXY), which measures its strength against a basket of selected currencies around the world, is now down 0.2%.

In the crypto market, Bitcoin is now down over 2% and is trading around $93,000. This, after earlier this week, the price of the coin approached the 98 thousand dollar mark.

12:50

The declines in Europe are strengthening slightly. At this time, the Dax falls by about 1.4%, the Kakka loses its value by about 1.6% and the Potsi falls by about 0.7%.

In the commodity market, gold and silver prices continue to soar and are trading at new all-time highs. The price of gold rises by about 1.5% and now stands at about $4,670 per ounce, while the price of silver climbs by about 5% and stands at about $93 per ounce.

12:00

A little while ago, Reuters reported that Japanese Prime Minister Sana Takaichi announced that she would go to a snap election round on February 8, according to early estimates. Takaichi is making the move in order to gain voter confidence in her economic plans, which include increased government spending, tax breaks and a new security strategy that is expected to speed up the country’s defense sector.

According to the report, Takaichi promised to promote a two-year stay on the 8% VAT on food, saying her plans would create jobs, push up household spending and increase tax revenue. It was also reported that the possibility of the VAT stay, which is estimated to reduce revenue by 5 trillion yen a year ($32 billion), led the 10-year government bond yield in Japan to a 27-year high earlier today.

Following the initial reports of expectations for Takaichi’s announcement of a snap election last week, the Tokyo stock market jumped about 3% to a new all-time high – although it has since retreated from it amid rising geopolitical tensions.

The Swiss EFG bank commented on Takaichi’s announcement and noted that while it was intended to strengthen the ruling party’s majority and open the door to an expansive fiscal policy, it also carries a significant political risk that could affect the stock, bond and Japanese yen markets:

According to Sam Juchim, an economist at EFG, such a move could allow for a more expansionary fiscal policy, after a record budget draft has already been approved for the fiscal year starting in April. Takaichi seeks to capitalize on her popularity before the effects of the escalation in tensions with China materialize, among other things through Beijing’s restrictions on tourism and the export of dual-use products. In addition, Takaichi also hopes to portray himself as a strong leader in Trump’s eyes, ahead of a possible visit to the United States in March.

EFG estimates that a significant victory for the LDP may reignite the “Takaichi deal”, and lead to a rally in the Japanese stock market and the sale of Japanese government bonds and the Japanese yen. At the same time, a continued weakness of the yen beyond what the economic data justifies, may advance the next interest rate hike by the Bank of Japan by several months, to March or April.

However, Takaichi is taking a risk in calling this election. Although she is a very popular prime minister, her party is less popular and faces a united opposition, following a surprising partnership between the main opposition party and a former coalition partner of the LDP.
The LDP may not be able to improve its majority, and Takaichi will find herself in a weaker position than she was before the election was called.

11:25

Trade in Europe continues to be conducted in sharp declines, following President Trump’s new tariffs on European countries. The DAX index falls by about 1.3%, the KAC loses its value by about 1.5% and the FTSE falls by about 0.5%.

The automotive sector in the STOXX 600 index loses about 1.6% of its value, with declines in the shares of car manufacturers such as Volkswagen , porsche and-BMW . In France, there are declines in the luxury sector, when stocks like Louis Vuitton , Kring , Hermes andMoncler losing height.

On the other hand, defense stocks in Europe are strengthening, with increases in stocks such as Rheinmetall , Rank , Thales andLeonardo .

10:21

Trading in Europe opened with sharp declines, led by the Frankfurt and Paris stock exchanges, which fell by about 1.5%, in London by 0.6%.

US futures are also down by about 1%, while “safe haven” assets such as gold are rising in response to President Trump’s latest move. The president wants to impose new tariffs on eight countries, including Germany and France, due to their opposition to his plan to purchase Greenland. In response, the dollar weakened against most of the world’s major currencies.

09:00

In Asia, the trend is mixed this morning – the Nikkei and Hang Seng indices fall by about 1%, on the other hand, the Kospi index in South Korea rises by a similar rate, Shanghai rises by 0.4%.

There will be no trading on Wall Street today due to “Martin Luther King Day”, but US futures are down by about 1% while “safe haven” assets such as gold are rising in response to President Trump’s latest move. The president is seeking to impose new tariffs on eight countries, including Germany and France, due to their opposition to his plan to purchase Greenland. In response, the dollar weakened against most of the world’s major currencies.

In a weekly summary, after a week full of geopolitical and policy developments, including renewed tensions with Iran and President Trump’s statements regarding Greenland, Wall Street stock indices registered moderate declines, with the S&P 500 down 0.4%, the Nasdaq down 0.7%, and the Dow Jones down 0.3%.

On the other hand, the S&P 500 index of equal weight actually registered an increase in the past week – the Wall Street Journal notes that the latest moves mark the acceleration of what is known on Wall Street as the “Rotation Trade”.

The Russell 2000 index of small-cap stocks rose a tiny 0.1% to beat the S&P 500 for the 11th day in a row, its longest relative winning streak since 2008.

Supported by robust GDP growth and strong corporate profits, investors are shifting their money from technology stocks with huge market capitalization (Megacaps) in favor of stocks that are expected to benefit from a renewed acceleration of the economy, such as industrial companies, energy and companies with small market capitalization (Small-caps).

This trend has gained momentum since the end of last year, driven by a more cautious approach to the process of building artificial intelligence infrastructure. Garrett Melson, a portfolio strategist at Natixis, noted that “this is a rotation out of everything related to growth and technology, towards all the other stocks that have been relatively lagging behind.”

On Friday itself, stocks oscillated between gains and losses before locking in a slight negative trend, with the S&P 500 and the Nasdaq falling marginally.

In the first two weeks of 2026, despite the sensational headlines, the stock markets continue to climb higher. While the news caused price fluctuations in assets such as gold and oil due to investors’ search for safe havens, the S&P 500 index recorded only three days of declines since the beginning of the year and closed with an increase of about 1.5%, while the indices in Europe and Asia also reached all-time highs.

Eric Friedman, chief investment officer at Northern Trust Wealth Management, explained this indifference by saying that “the markets are looking at these events individually, and it is likely that a unique response to each flare-up will be required to cause greater turbulence in the markets”, adding that the real concern will arise only “if lines are drawn that will affect trade in an increasingly isolated world”.

The coming week is shaping up to be volatile, with three centers of power that will determine the tone of Donald Trump’s speech at the World Economic Forum in Davos, the decision on the identity of the next Federal Reserve Chairman, and a significant acceleration in the report season.

On Wednesday morning (US time), President Trump will take the stage at the economic forum in Davos under the official theme “Spirit of Dialogue”. Investors are particularly alert for the speech, which is expected to deal not only with domestic issues such as the housing crisis in the US, but also with the promotion of his aggressive geopolitical policies, including the threats of tariffs on Europe and the plans regarding Greenland and Venezuela.

The second issue that preoccupies the markets is the question of Jerome Powell’s successor. As of the weekend, Kevin Warsh, a former Fed official, has become the leading candidate with a 60% chance of winning in the prediction markets (such as Polymarket). The U-turn came after Trump hinted that he would prefer to keep the other front-runner, Kevin Hassett, in his current role as head of the National Economic Council. Markets responded by rising bond yields, as Warsh is seen as less “junior” (less prone to aggressive rate cuts) than Haste, indicating that interest rates may remain high for longer.

In the corporate arena, all eyes are on Netflix and Intel’s reports.

Netflix is at the center of one of the biggest dramas in media history, as she leads the race to buy Warner Brothers for about 83 billion dollars. Despite a higher offer from Paramount. Warner’s board continues to recommend the deal with Netflix. Investors will look to the reports for signs that Netflix can afford the huge acquisition costs while maintaining growth.

Intel is expected to report its results on Thursday. After a year of a 125% jump in the stock, Intel needs to prove that its investments in AI chips and in the establishment of foundries are starting to bear fruit, despite the expected decrease in profits compared to last year.

The long-term yields in the American bond market continue to move in a narrow range, despite many economic, security and political events. Since the beginning of the year, the yields have risen slightly while the yield curve has flattened. There has been a fairly strong increase in implied inflation expectations and a decrease in real yields.

The contracts represent a reduction in the Fed interest rate by the end of the year by less than 0.5%. The reduction in interest rate cut expectations comes against the backdrop of an improvement in growth forecasts and Trump’s insinuation that the more “junior” candidate for Fed chairman (Kevin Hessant) has smaller chances of being appointed.

● The succession struggle for the position of Federal Reserve chairman is escalating and threatening the dollar

In the corporate debt market in the US, it was reported over the weekend about bond purchases by the US President, despite the conflict of interest in which he is.

Trump purchased corporate bonds of Netflix and Warner Brothers with a total value of at least one million dollars – and this only a few days after he announced his intention to intervene in the deal between them – according to a financial update provided by the White House last Friday.

According to the update, Trump made two bond purchases from Netflix and two more from Warner, each worth at least $502,000, between December 12 and 16.

Conflict of interest? Trump, according to Bloomberg, promoted Boeing’s planes during visits to foreign capitals, and praised the company’s sales of planes to airlines in Qatar, Japan and other countries.

Netflix is ​​currently locked in a bitter battle with Paramount over the acquisition of Warner Bros., which poses a significant antitrust test for the Trump administration, regardless of who wins the merger battle. Trump has stated that he plans to be personally involved in examining whether the merger will succeed, and Hollywood is watching the president closely for any hint of how he views the battle for the iconic studio.

The new White House capital statement released on Thursday shows that Trump’s purchases also included bonds of Qaverwave, General Motors, Boeing, Occidental Petroleum, and United Rentals, he also bought municipal bonds of US cities, local school districts, infrastructure and hospitals.

These investments are just the latest example of how Trump continues to accumulate wealth during his presidency. He also regularly juggles his private business with his official duties, which has raised questions about potential conflicts of interest.

The White House did not immediately respond to a request for comment from Bloomberg.

Trump began a $104 million bond buying spree during his term in office in August, Trump reported 690 transactions he made since his return to the White House in January 2025, totaling at least $104 million. He made additional transactions disclosed in November and December totaling $106 million, including three additional sales worth $2 million.

A senior White House official said that neither Trump nor any of his family members made the investment decisions. Independent financial managers made the bond purchases and added that the Office of Government Ethics approved the reports. According to a White House official, the same is true of the transactions in the later reports.

Bloomberg points out that, unlike his predecessors in office, Trump did not realize his assets and did not transfer them to a ‘blind trust’ managed by an independent supervisor. His branching business empire is managed by two of his sons and operates in a number of areas that are tangential to presidential policy.

Bank of America predicts that the dollar is expected to weaken against most currencies this year, because lower interest rates in the US lower the cost of protecting against the risk of the currency weakening – “as the US interest rate differentials are expected to continue to narrow following the Federal Reserve’s interest rate cuts, the costs of hedging American assets against a weaker dollar will also decrease,” they say.

“We see the relatively high hedging costs as one of the main obstacles that may prevent the continuation of hedging activity (of exposures to the dollar) in 2025.” The Trump administration’s pressure to lower housing-related costs may encourage further interest rate cuts, they say. Risks related to the independence of the Federal Reserve are also a potential headwind for the dollar.”

The economic attack (trade war) by the American government sent ripples directly to the commodity market, where new records were set this morning: the prices of silver and gold for immediate delivery (Spot) soared to levels never seen before: the price of silver recorded a sharp increase of over 4.17%, reaching $93.7 per ounce, while gold traded up 1.8% and its price was set at $4,677 per ounce.