Daily Game Plan

by Contributor
on January 20, 2026

TODAY’S GAME PLAN:  from the trading
desk, this is not research

TODAY’S ECONOMIC DATA:   8:15ET ADP Weekly Employment Change; 8:30ET Philadelphia Fed Non-Manufacturing Activity

Highlights and News:  

  • Netflix reaches an all-cash agreement to buy Warner Bros. The deal value remains at $27.75/share
  • UK approves Chinese plans to build ‘Mega-Embassy’ in London
  • Trump reveals on social media texts with President Emmanuel Macron, rejecting an invitation to back his latest peace initiative and suggested the US would impose duties on France’s politically sensitive
    agriculture sector
  • Ukrainian President Volodymyr Zelenskiy said he’ll likely scrap plans to attend the World Economic Forum as he oversees the nation’s response to Russian air strikes.
  • Bessent said Trump may announce his pick for the next Fed Chair as soon as next week

 

 

Global stocks continue to selloff as tensions between the US and Europe remain high as the US further pushes to take control of Greenland. President Donald Trump
threatened steep tariffs overnight on champagne after Emmanuel Macron ruled out joining a US-led peace initiative. Markets will look to a few events this week for direction, with an opportunity for the US Supreme Court ruling on Trump’s tariff and trade policy
taking place today. About 78% of tariff program revenue is the result of International Emergency Economic Powers Act related trade remedies that are at risk if the court rules against the administration. Earnings season also looks to build on its hot start
with expectations remaining high. About 88% of the 33 S&P 500 companies that have reported so far have beaten expectations according to data compiled by Bloomberg Intelligence.

 

EQUITIES: 

US equity futures are lower after the Martin Luther King Jr. holiday and as global markets are aggravated by President Donald Trump’s threat to impose escalating tariffs on Europe. S&P
500 Index futures fell 1.5% at 7:30 a.m. in New York. A drop of that magnitude would leave the underlying index in the red for the year. Shares in US gold and silver miners are higher as investors look for safe-haven assets, meanwhile risk-assets like cryptocurrencies
tumbled. Other risk-heavy sectors are also being hit by the risk-off sentiment. Technology and chip stocks such as Nvidia, AMD, and Tesla are tumbling. Consumer retail and legacy automakers are also lower, with Nike and Ford each down over 1% ahead of the
open. Magnificent Seven names are also down significantly as markets navigate the high levels of trade uncertainty and clues from any Supreme Court tariff rulings as well as Trump’s affordability pitch in Davos.

Futures ahead of the bell: E-Mini S&P -1.3%, Nasdaq -1.6%, Russell 2000 -1.4%, DJI -1.2%.

In pre-market trading, Netflix Inc. (NFLX) inches about 1% higher after reaching an amended, all-cash agreement to buy Warner Bros. Discovery Inc.’s studio and streaming
business. Gold and silver miners, including Newmont (NEM) and Agnico Eagle (AEM), rise as investors to look for safe-haven assets. 3M Co. (MMM) declines 4% after providing a 2026 adjusted earnings forecast range with a midpoint that fell slightly short of
estimates. AppLovin (APP) falls 7% after a negative research report by CapitalWatch. ImmunityBio (IBRX) rises 23% after the drug developer said it held a Type B End-of-Phase meeting with the US FDA regarding its supplemental application for its drug to treat
bladder cancer.

European gauges slide on fears of a US-EU trade war over Trump’s push for Greenland control. Over the weekend, Donald Trump said Britain, Denmark, Finland, France,
Germany, the Netherlands, Norway and Sweden would be subject to a 10% tariff on all goods sent to the US, from February 1st and until Denmark agrees to cede Greenland. EU members ponder retaliatory plans including counter-tariffs and a possible
concerted strategy to offload US treasury bonds. The European Union is weighing potential levies on €93 billion ($109 billion) of US goods. Share indexes in the region are lower across the board, with Citigroup strategist, Beata Manthey, cutting stocks in
continental Europe to neutral from overweight, her first downgrade in over a year. Consumer products and construction stocks were among the biggest laggards, while media and personal care sectors outperformed. In single stocks, Wise Plc rallied 12% after the
money-transfer firm gave an upbeat earnings guidance. Meanwhile, LVMH shares fell 2.3% as Trump floated the idea of a 200% levy on French wines and champagne. Stoxx 600 -1.3%, DAX -1.5%, CAC -1.1%, FTSE 100 -1.0%.

Shares in Asia declined their most in over a week after tech names weigh heavy on the region. Samsung Electronics, Tencent, and SK Hynix were among the biggest impact
on indexes, sinking among growing political uncertainty. Japan’s Topix fell the most in a month following Prime Minister Sanae Takaichi’s snap election announcement and a slump in Japanese bond prices. The 40-year rate rocketed past 4% to a fresh high, the
first for any Japanese sovereign debt in over three decades. Chinese equities fell following a raft of measures by Beijing to cool a market rally despite a 4.5% GDP increase in the fourth quarter. China’s retail sales, however, slowed to an increase of only
0.9%, its smallest rise in over three years. Stocks in India saw their biggest decline in eight months, the NSE Nifty 50 Index fell 1.4%. Foreign investors have been selling off in recent sessions, pushing year-to-date outflows to nearly $2.5 billion amid
a tepid start to earnings. Meanwhile, Southeast Asia’s other emerging markets are showing strength as stocks are poised for their first back-to-back monthly foreign inflows in nearly 16 months. Taiwan +0.4%, Thailand +1.0%, Kospi -0.4%, Vietnam -0.15%, ASX
200 -0.7%, Singapore -0.1%, Sensex -1.3%. Hang Seng Index -0.4%, Philippines -1.3%, Nikkei 225 -1.1%, CSI 300 -0.3%.

 

FIXED INCOME: 
 

Treasuries extended losses early Tuesday as global risk aversion drove US 30-year yields nearly 10 basis points higher and swap spreads sharply tighter. The move
followed market jitters sparked by President Trump’s threats toward European allies and a steep selloff in long-maturity Japanese government bonds tied to fiscal concerns, which pushed the 40-year JGB yield above 4% for the first time since 2007. US 10-year
yields rose about 6bp to 4.28%, widening curve spreads, while S&P 500 futures fell roughly 1.4%. Despite the risk-off tone, two new investment-grade bond deals were announced, and this week’s Treasury auctions include a $13 billion 20-year reopening and $21
billion in 10-year TIPS.

 

 

 

METALS: 

Gold surged to a record high above $4,700 an ounce as geopolitical tensions over the US push to control Greenland intensified, driving investors toward haven assets
and extending a yearlong rally. The metal rose 1.2% to $4,731.07 in London trading, while silver also hit an all‑time high, as markets braced for Europe’s response to potential US tariffs on allied nations. A weaker dollar, falling Treasury prices, and rising
fiscal risks across major economies further supported bullion, which has climbed nearly 75% over the past year. Analysts said the Greenland standoff and broader “resource nationalism” theme are fueling continued demand for precious metals. Gold +3.01%, Silver
+7%

 

 

 

 

ENERGY:   

 

Oil prices fluctuated on Tuesday as traders balanced geopolitical tensions tied to the US push for Greenland with persistent concerns about oversupply. Brent hovered
near $64 a barrel, while WTI traded around $60, amid fears that worsening US-EU relations could slow global growth and weigh on energy demand. The International Energy Agency projected a supply surplus exceeding 3.8 million barrels per day this year, though
recent production outages in Kazakhstan provided some support. Analysts said growth risks and tariff threats continue to dampen market sentiment, suggesting crude may remain under pressure despite intermittent supply disruptions. WTI +0.98%, Brent +0.75%,
US Nat Gas +23.8%, RBOB +0.8%. 

 

CURRENCIES: 

In currency markets, the US dollar extended its decline against all major peers Tuesday as President Trump’s Greenland-related rhetoric heightened trade tension risks
and bolstered demand for safer currencies. The Bloomberg Dollar Spot Index fell 0.4% to a two-week low, while the euro and Swiss franc led gains, with EUR/USD climbing 0.7% to 1.1729. Treasury yields rose six basis points to 4.28% as markets reopened, and
FX volatility spiked to near two-month highs amid rising demand for euro calls. Commodity-linked currencies gained on higher gold and LNG prices, while the yen strengthened as Japanese yields surged following fiscal policy proposals. US $ Index -0.8%, USDJPY
+0.1%, USDCHF +0.9%, USDCAD +0.3%, NZDUSD +0.6%, GBPUSD +0.1%, EURUSD +0.6%, AUDUSD +0.2%

 

 

 

Spot Bitcoin -2.1%, Spot Ethereum -3.4%.

 

Colors within the report:
Green is always the 200 period (day, week).
Red is always 21,
Blue = 50,
Brown =
100 *Stars have added importance 

 

 

 

Data sources: Bloomberg, Reuters, CQG

 

 

Bryan Duong

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Charts

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