Newsquawk US Holiday Market Wrap: US equity futures see weakness amid downbeat risktone on Trump tariff threats

SUMMARY: US cash indices were closed on Monday due to MLK Jr. Day, but equity futures saw weakness, with NQ & RTY underperforming as geopolitical tensions with the US over Greenland weighed on sentiment. Markets have had a tumultuous start to 2026, with renewed uncertainty driven by Trump’s continued push for Greenland and his threats to impose tariffs on eight European countries. In response, EU nations have unsurprisingly been outspoken about how they do not deem the tariff threats acceptable, while the UK PM distanced himself from retaliatory measures. In FX, the Dollar was weaker amid renewed trade tensions, with G10 FX gaining across the board. CHF was the favoured haven, and the Yen was the relative laggard as PM Takaichi announced that she will formally call a snap election this Friday once the Lower House reopens. Antipodeans benefit from the continued strength in metals prices. The crude complex was choppy, but is ultimately flat at the time of writing. Overnight, benchmarks gapped lower, however, the downside was markedly curtailed by the Iranian President threatening an all-out war if the Supreme Leader is attacked. Spot gold saw gains and printed a fresh all-time high. EU debt markets were underpinned by the latest US tariffs and the accompanying hit to the risk tone, while T-Note futures were pressured as the "Sell America" trade has seemingly returned, at least for today.

EUROPEAN CLOSES: Euro Stoxx 50 -1.77% at 5,923, Dax 40 -1.33% at 24,960, FTSE 100 -0.39% at 10,195, CAC 40 -1.78% at 8,112, FTSE MIB -1.32% at 45,196, IBEX 35 -0.26% at 17,665, PSI -0.90% at 8,561, SMI -0.95% at 13,281, AEX -1.73% at 993.

• The SEC approved new options expiries for 'Mag 7' stocks, allowing Nasdaq to list contracts expiring on Mondays and Wednesdays. Nasdaq proposed the change in May.
• Apple's (AAPL) Q4 China iPhone shipments rose by +28% Y/Y, according to Counterpoint Research.
• Google (GOOGL) filed an appeal against a federal ruling that it held an illegal monopoly in internet search, seeking to pause remedies. The case stems from a trial that began in September 2023, with an August 2024 ruling under the Sherman Act. Google argues remedies risk innovation and privacy
• Elon Musk is seeking USD 79–134bln in damages from OpenAI and Microsoft (MSFT), alleging the AI company defrauded him by abandoning its non-profit mission through the partnership. The claim was detailed in a court filing Friday after a judge rejected efforts to avoid a jury trial set for late April in California.
• US drugmakers are pressing Europe to raise medicine prices after agreeing with President Trump to cut US prices, FT reports, with some threatening to withhold or delay new drugs.