World, US Shares Sink on Greenland News01/20 04:46

   U.S. futures fell sharply and European markets shed more than 1% on tensions 
driven by the Trump administration's new tariff threats over Greenland.

   TOKYO (AP) -- U.S. futures fell sharply and European markets shed more than 
1% on tensions driven by the Trump administration's new tariff threats over 
Greenland.

   France's CAC 40 slipped 1.2% to 8,014.42, while Germany's DAX lost 1.5% to 
24,581.44. Britain's FTSE 100 shed 1.3% to 10,068.04.

   The future for the S&P 500 sank 1.8% while that for the Dow Jones Industrial 
Average dropped 1.6%.

   Trump said Saturday that he would charge a 10% import tax starting in 
February on goods from Denmark, Norway, Sweden, France, Germany, the United 
Kingdom, the Netherlands and Finland because of their opposition to American 
control of Greenland.

   Trump's threats have sparked outrage and a flurry of diplomatic activity 
across Europe, as leaders consider possible countermeasures, including 
retaliatory tariffs and the first-ever use of the European Union's 
anti-coercion instrument.

   Meanwhile, U.S. Treasury Secretary Scott Bessent, speaking on the sidelines 
of the World Economic Forum annual meeting in Davos, Switzerland, asserted that 
America's relations with Europe remain strong. He urged trading partners to 
"take a deep breath" and let tensions driven by the tariff threats over 
Greenland "play out."

   In Asian trading, Tokyo's benchmark Nikkei 225 lost 1.1% to 52,991.10 after 
Prime Minister Sanae Takaichi called a snap election for Feb. 8.

   Yields on long-term Japanese government bonds surged after Takaichi 
indicated Monday she planned to dissolve parliament and hold an election, 
aiming to capitalize on her strong public opinion ratings. She also has 
proposed temporarily suspending the food tax.

   Expectations that Takaichi will take a renewed electoral mandate to raise 
government spending have revived worries over Japan's national finances, 
pushing yields sharply higher, while prices of such investments have fallen as 
investors sold their holdings. The yield on the 40-year government bond surged 
to a record 4% on Tuesday, while yields on other long-term bonds also have been 
surging to decades-high levels.

   Chinese markets also declined. Hong Kong's Hang Seng gave up 0.3% to 
26,487.51, while the Shanghai Composite ended nearly unchanged at 4,113.65.

   In South Korea, the Kospi dropped 0.4% to 4,885.75, while Australia's 
S&P/ASX 200 lost 0.7% to 8,815.90.

   Taiwan's Taiex gained 0.4% and the Sensex in India declined 0.8%.

   "Geopolitical events will remain in focus today, particularly any talks that 
may take place in Davos," said Michael Brown, a senior research strategist at 
Pepperstone, referring to the World Economic Forum.

   This week will bring more corporate earnings in the U.S. and an update on 
inflation preferred by the Federal Reserve for making policy decisions.

   The U.S. Federal Reserve's next policy meeting is in two weeks. It's 
expected to keep its benchmark interest rate unchanged, as it strives to 
balance a slowing jobs market with inflation, which remains above the Fed's 2% 
goal. The Bank of Japan has a monetary policy board meeting ending later this 
week.

   In other dealings early Tuesday, U.S. benchmark crude oil lost 49 cents to 
$58.95 per barrel. Brent crude, the international standard, shed 33 cents to 
$63.61 a barrel.

   The U.S. dollar fell to 157.83 Japanese yen from 158.09 yen. The euro rose 
to $1.1716 from $1.1645.