Stocks in London are expected to open lower on Monday after Donald Trump threatened new tariffs against European countries, including the UK, over opposition to his proposal to take control of Greenland.
Futures point to the FTSE 100 opening 40.9 points lower, down 0.4% at 10,194.39. The index closed Friday down 3.65 points at 10,235.29.
Market sentiment was further unsettled after Trump said he would impose tariffs on countries that oppose his Greenland plan. From February 1, Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland would face a 10% tariff on all goods exported to the US, rising to 25% from June 1, 2026, unless a deal is reached. The countries warned in a joint statement that the threat risks damaging transatlantic relations.
Denmark’s foreign minister said the move could undermine the global order and the future of the NATO alliance. NATO Secretary General Mark Rutte confirmed discussions with Trump on Arctic security ahead of this week’s World Economic Forum in Davos. Aides to Emmanuel Macron said France may push the EU to activate its so-called anti-coercion instrument in response.
In currency markets, sterling edged higher to USD1.3397 on Monday morning from USD1.3382 at Friday’s London close. The euro firmed to USD1.1627 from USD1.1596, while the dollar eased against the yen to JPY157.84 from JPY158.06.
US markets were closed on Monday for the Martin Luther King Jr Day holiday. On Friday, the Dow Jones Industrial Average slipped 0.2%, while the S&P 500 and Nasdaq Composite both fell 0.1%.
Asian markets were mixed on Monday. Japan’s Nikkei 225 declined 0.7%, Hong Kong’s Hang Seng Index dropped 1.1%, while China’s Shanghai Composite rose 0.2%. Australia’s S&P/ASX 200 fell 0.3%.
In commodities, gold surged to USD4,675.10 an ounce early Monday from USD4,594.24 late Friday, while Brent crude eased to USD63.59 a barrel from USD64.48.
