๐Ÿ“ˆ Market Report:

๐Ÿ”ฎ We seem to have been able to foresee this as well. As we said last week, Trump’s announcement of increased production in the oil market, which would lower the price of oil, and ensure inflation remains low (oil is the most inflationary asset) was behind getting the Fed to lower rates.

๐Ÿ›๏ธ U.S. President Donald Trump said he wants the Federal Reserve to immediately cut interest rates, arguing he understands monetary policy better than those charged with setting it.

๐Ÿ”Œ Donald Trump suggested that TSMC, a global semiconductor leader founded in 1987 in Taiwan with significant early ties to US companies and customers, could return to the United States, noting that they would not need money, only incentives, and that the move would be beneficial for both the company and the country, promising unprecedented change in the technology sector.

๐ŸŒŽ Donald Trump plans to impose tariffs on Canada, Mexico, and possibly China starting Saturday, unless these countries take measures to address illegal immigration and the flow of fentanyl into the U.S. He has set a 25% tariff on imports from Canada and Mexico, and a 10% tariff on Chinese goods, unless these conditions are met by the February 1 deadline. Mexico, Canada, and China, are the U.S.’s top trading partners, responsible for $2.1 trillion in annual trade. Disrupting this trade could have severe consequences, particularly for industries like auto manufacturing that rely on cross-border supply chains.

๐Ÿฆ BoE Governor Bailey testifies to parliamentary committee. However, we do not expect interest rate announcements until 6 February.

๐Ÿ“Š Three giants report results today: Meta, Microsoft and Tesla.

๐Ÿค– Nvidia celebrates DeepSeek as a significant breakthrough in AI, seeing it as an opportunity to consolidate its leadership in artificial intelligence, rather than a threat to its chip business, even after a plunge in its market value greater than that of Netflix and twice that of Wells Fargo, according to CNBC’s Adrian van Hauwermeiren.

๐Ÿ”‹ Northvolt, a Swedish battery maker, has requested $1.29 billion from shareholders to help restore its bankrupt business. The company filed for Chapter 11 bankruptcy in the U.S. in November after talks for fresh funding collapsed. Northvolt is intensifying its search for investment before its cash reserve runs out in February. Shareholders include Goldman Sachs, BMW, Volkswagen, and Scania. Chinese, South Korean, or Japanese battery makers are seen as the best hopes for a rescue due to their expertise in EV battery making. If Northvolt secures more funding, it is likely to come from a mix of financial and strategic investors.

๐Ÿ“‰ Market View:

๐Ÿ”„ Nothing has happened here. US futures are recovering quickly after the scare in the technology sector. At the moment, Mini S&P 500 futures are trading above 6,100 points, on track to regain their highs, while Nasdaq 100 futures are also showing bullish behaviour, reaching 21,660 points.

๐Ÿ’น The dollar index rose above 108 points yesterday, but has retreated slightly and now stands at 107.85 points. The EUR/USD seems to have found support at 1.04 and is currently trading at 1.0430. US bond yields continue to decline, with the 2-year bond returning to 4.18%.

๐Ÿ‡ช๐Ÿ‡บ The European market regains its optimism despite the delicate economic situation in Europe. DAX 40 futures reach new all-time highs at 21,665 points.

โ›ฝ Crude oil continues its upward trend for the second day in a row, although it has not yet managed to recover the levels lost on Monday. At the moment, Brent crude is trading at 77.55 dollars a barrel.

๐Ÿฅ‡ Gold has also been bullish, moving in line with other financial assets rather than as a safe haven. In the last few hours, it approached 2,775 dollars per ounce, but is currently trading 10 dollars below this level.

๐Ÿ’ฐ Finally, Bitcoin remains strong. During yesterday’s session it approached $104,000, although it has retreated slightly and is now trading at $102,545.

๐ŸŒ Geopolitics:

๐Ÿ‡ซ๐Ÿ‡ท France has declared its readiness to deploy troops to defend the territorial integrity of Greenland, a sovereign territory of Denmark, in the face of former President Trump’s threats to annex it. French foreign minister Jean-Noรซl Barrot said: โ€˜If Denmark asks for help, France will be there,โ€™ while stressing that โ€˜European borders are sovereign, whether north, south, east or westโ€ฆ no one can afford to play with our borders.

๐Ÿ“Š A study shows that, in spite of Trump’s assertions to the contrary, Greenlanders are massively against joining the US. In order to mobilise support against the US president’s threats to appropriate the Danish realm, Danish Prime Minister Mette Frederiksen met with German Chancellor Olaf Scholz, French President Emmanuel Macron, and NATO Chief Executive Mark Rutte yesterday.

๐Ÿšซ In the US, the CDC orders all US public health officials to stop working with the WHO, effective immediately.

โœ๏ธ Trump signs executive order to exclude transgender people from the US military: The measure seeks to reform the armed forces by excluding transgender military personnel.

๐Ÿ‡ฉ๐Ÿ‡ช Germany’s conservatives have gone from demonising the AfD to making it their political partner. Friedrich Merz, the leader of Germany’s CDU/CSU conservative bloc, is set to propose plans to restrict migration, potentially with the support of the far-right Alternative for Germany (AfD) party. The proposed motions call for increased security measures and the closure of German land borders for irregular migration, which critics argue is incompatible with European law. With the center-left SPD and Greens opposing the motions, Merz needs the support of the AfD and other smaller parties to pass them. Support for Merz’s CDU/CSU bloc has dropped to 28%.

๐Ÿ‡ฎ๐Ÿ‡น Italian Prime Minister Giorgia Meloni faces an investigation into the release of Libyan General Osama Najim, wanted for war crimes, which has led to tensions with the judiciary, criticism from โ€˜left-wingโ€™ judges, according to Meloni, and affected Italian bonds, whose 10-year yield and risk premium have risen following the announcement.