Daily Market Report – January 19, 2026
The USA celebrates Martin Luther King Jr. Day today to honor Dr. Martin Luther King Jr., who fought for civil rights and was murdered in 1968. Accordingly, the NYSE and Nasdaq are closed today. A look at Europe shows: There is little reason for joy in the markets. The Dax has fallen by 1.3% and slips below the 25,000 mark, the CAC is down nearly 1.8%, making it the only major stock market with negative YTD performance. US futures are also trading about 1% lower. The trigger is another American: Donald Trump. European stocks are falling because Trump's new tariff threats against eight European countries (related to Greenland) are raising concerns about a new transatlantic trade war. Risk appetite is noticeably decreasing. The victims: BMW XETR:BMW, Mercedes-Benz XETR:MBG, Volkswagen Vz. XETR:VOW3, Stellantis MIL:STLAM, Ferrari MIL:RACE. In addition to the cyclical automotive industry, other export-oriented stocks are also under pressure: LVMH EURONEXT:MC, Kering EURONEXT:KER, Hermès EURONEXT:RMS and Burberry LSE:BRBY are falling significantly. Tech stocks are also being punished: The decline of ASML EURONEXT:ASML as an important cyclical tech proxy in Europe suggests that the US tech sector is likely to start weaker tomorrow. But there are also beneficiaries: Rheinmetall XETR:RHM, Thales EURONEXT:HO, BAE Systems (LSE:BA.), Leonardo MIL:LDO, HENSOLDT XETR:HAG, Dassault Aviation EURONEXT:AM and other defense stocks are rising significantly today. Europe will likely have to invest more in its own defense – this is driving defense stocks. Also, Fresnillo LSE:FRES, Endeavour Mining LSE:EDV and other mining stocks are rising as investors flee to gold and mining stocks as a perceived safe haven.