MPC Morning Call 21st January 2026 – Stocks hit as risks continue to pile up
Stocks were hit overnight as the weight of too many uncertainties finally saw investors take some risk off the table
WATCH ON YOUTUBE MPC Morning Call 21 st January 2026 – Stocks hit as risks continue to pile up Stocks were hit overnight as the weight of too many uncertainties finally saw investors take some risk off the table Global markets reacted sharply after U.S. President Donald Trump announced new tariffs on several European nations, starting at 10% in February and rising to 25% by July, claiming they would remain until Denmark agreed to cede Greenland to the United States. His comments, including threats of 200% tariffs on French wine and assertions about Greenland’s strategic importance, sent shockwaves through markets and diplomatic circles. European leaders condemned the move and scheduled an emergency meeting to discuss retaliatory measures, which could include tariffs on €93 billion of U.S. goods and further restrictions on trade and investment. Legal uncertainty also looms, as the U.S. Supreme Court is expected to rule soon on the legality of Trump’s tariffs under the International Emergency Economic Powers Act (IEEPA), a 1977 law allowing the president to act during national emergencies. Many analysts anticipate the Court may reject Trump’s justification, given skepticism expressed by several justices in earlier hearings. Meanwhile, Treasury Secretary Scott Bessent revealed that Trump could name the next Federal Reserve chair as early as next week, adding another layer of speculation to already unsettled markets. Amid the geopolitical turmoil, investors are turning their attention to corporate earnings, beginning with Netflix’s quarterly results, which are forecasted to show earnings per share of $0.55 on $11.96 billion in revenue. Netflix has also advanced its $82.7 billion offer for Warner Bros. Discovery, gaining approval from WBD’s board. Later in the week, major companies like Johnson & Johnson, Intel, and Procter & Gamble will report results, with markets expecting overall S&P 500 earnings growth between 12% and 15%. In response to mounting trade tensions, U.S. Treasury yields rose and gold prices hit record highs as investors sought safety, underscoring the deepening uncertainty in global markets. Government Bond Yields Commodities, Energy & FX ASX Overnight: SPI 8742 (-0.55%) The Day Ahead: The ASX is unlikely to look great today, except in precious metals
Read on MPC Markets Mosaic
