Stocks Rebound, Metals Slide as Greenland Fears Ease

Markets appeared to breathe a sigh of relief yesterday after the US and NATO agreed on a framework to discuss Greenland. This development appeared to diffuse tensions enough for the US to agree to drop the tariff increases against eight EU countries that had been planned for February 1st.

Building on yesterday’s bullish reversal, where US indices shrugged off early losses to finish with 1.2% gains, US index futures are up between 0.3% and 0.9% this morning. Europe is also bouncing back, with Frankfurt, Paris, and Milan up 1.0% to 1.2%, while London is higher by 0.4%.

Currency markets appear to be taking a more cautious approach on whether to move risk-on or remain risk-off. Cryptocurrencies are quiet, while precious metals are mixed, with Gold down 0.3% and Silver rebounding 0.5%. The US dollar is under pressure again today, with the Swiss Franc up 0.5%, the Euro up 0.3%, and the Loonie up 0.2%.

Energy markets are mixed today. With much of North America in a deep freeze and a large storm forecast for this weekend, Natural Gas is up another 6.5%. Crude Oil, however, is down 2.1% and has fallen back below $60.00 following President Trump’s unveiling of the “Board of Peace” to deal with the ceasefire and reconstruction in Gaza. Copper is down 0.7%.

Earnings season continues to ramp up. This morning, GE Aerospace* ($1.57 vs Street $1.43) and Procter & Gamble ($1.88 vs Street $1.86) both reported results above expectations. After the close today, results are due from Intel*, CSX, Alcoa, and Capital One Financial.

US weekly jobless claims came in better than expected (200K vs Street 212K). Q3 US GDP was also slightly better than expected (4.4% vs Street 4.3%), which may point to continued strength in the US economy.

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

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