Daily Market Report – January 20, 2026

Tuesday, January 20, 2026

Stocks are falling broadly in Europe, the USA, and parts of Asia after new tariff threats from Washington in the dispute over Greenland raise concerns about a renewed transatlantic trade spiral. In Europe, the major indices are dropping significantly, and Wall Street is trading noticeably weaker after the holiday; at the same time, nervousness is rising, the volatility index is climbing sharply above 20, and "safe havens" like gold are being sought.

A second stress factor is coming from Japan: Japanese government bonds (JGBs) are shooting to record levels, particularly the long maturities; the 40-year yield jumps above 4% for the first time. The trigger is growing fiscal concerns ahead of the election – this is putting pressure on bond prices and simultaneously exerting significant pressure on the yen; the movement is also affecting global interest rate markets. In the USA, yields are rising.

Individual stocks: In Europe, luxury and cyclical stocks remain under pressure. In the USA, the downward movement is broad. The S&P 500 is trading almost 2% lower.