Traders go Defensive as US Returns to Trading

With the dispute between the US and Europe over Greenland escalating amid more tariff threats and President Trump heading to Davos for meetings this week, traders have shifted to a more defensive stance.

US investors have apparently returned from the Martin Luther King holiday in a selling mood. Index futures are down 1.3% to 1.7% with NASDAQ futures leading the way downward. Cryptocurrencies are also getting hammered again today with Bitcoin down 2.4% and Ether down 4.0%. Overseas equity markets are also under pressure with the Dax down 1.2%, the FTSE down 0.9%, the Nikkei down 1.1% and the Hang Seng down 0.3%.

Defensive havens Gold and Silver are soaring today up 2.8% and 7.2% respectively, and the Swiss Franc is up 1.0%. Commodities are also climbing with Crude Oil up 1.0% and Copper up 0.2%. The US Dollar is selling off sending the Euro up 0.8% and the Loonie up 0.3%.

Earnings season continues this week with results dominated by US regional banks. 3M* has exceeded expectations, ($1.83 vs street $1.80), a positive sign for manufacturers.  Other notable headliners include Netflix this afternoon, and GE Aerospace* on Thursday.

*Shares of 3M and GE Aerospace are held in some portfolios managed by SIA Wealth Management.

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