Market Musings 1/21/2026
Quick thoughts on the markets and major portfolio news. Not on Ursa yet? Download Ursa from the App Store!
Markets tumble as #Tariffs and Greenland tensions escalate…
#Inflation took a backseat as #Tariffs and #GlobalTension sent markets lower. Markets tumbled more than -2% on Tuesday after the White House escalated trade war fears tied to rising tensions over Greenland.
What’s going on?
The White House has sharpened its focus on Greenland citing its strategic Arctic location as well as access to critical resources. But Greenland isn’t interested and neither is Denmark which governs the territory and is a NATO ally. Other European NATO members have stepped in to back Denmark and Greenland as well－raising the geopolitical stakes.
Why does the market care?
Unlike Venezuela which markets largely shrugged off, this situation directly pits the US against the EU, its largest trading partner. The White House has escalated pressure by floating new #Tariffs starting around 10% and rising to 25% if Europe doesn’t back off.
And, Europe isn’t backing down. In response, the EU is pausing approval for the US trade agreement tied to last year’s #Tariffs negotiations.
That combination, escalating #GlobalTension with NATO allies and renewed #Tariffs threats, has markets scrambling to reprice risk.
Broad markets are lower coming out of the long weekend, but impact could become more sector-specific if tensions persist. Export-heavy industries like autos and industrials could face pressure. Travel may feel the impact of rising uncertainty and financials could feel it from higher rates as risk premiums increase.
Looking ahead, attention turns to Europe this week. U.S. officials are attending the Davos meetings, and markets will be watching closely for any signs that diplomacy can cool the rhetoric. For now, #Tariffs and #GlobalTension are back in the driver’s seat.
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The statements, opinions and analyses presented here are provided as general information. This article is the opinion of the author. Anything within this article should NOT be considered an investment recommendation or advice. See Ursa’s full disclosures here.
Original Photo by Pixabay.