Daily Dispatch: Global markets fall on Trump’s Greenland tariff threats

Tuesday, 20 January 2026

A boy holds a crossed out map of Greenland topped by a hairpiece symbolizing US President Donald Trump, during a protest against Trump's policy towards Greenland in front of the US consulate in Nuuk, Greenland. on Saturday.

Market Summary

In mid-afternoon trade, US markets tumbled after Trump revealed more details about the tariffs for European countries that oppose his planned takeover of Greenland.

The US president said he would impose additional 10% levies from February 1 on goods imported from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Britain, which would rise to 25% on June 1 if no deal on taking over Greenland was reached.

US equity markets are closed on Monday for Martin Luther King Jr. Day, but both the S&P500 and tech-heavy Nasdaq fell more than 1.2%.

In Europe, the STOXX 600 index mirrored losses on Wall Street, down 1.2%. Major indexes in Frankfurt, Paris and London were down between 0.4% to 1.7%.

Asian markets also declined in trade on Monday. Japan's Nikkei fell 0.7%, Hong Kong's Hang Seng index fell 1.05% and Seoul stocks bucked the weak regional trend, with the Kospi finishing up 1.32%.

China met its 5% growth mandate for 2025.

Chinese shares fluctuated on Monday before ending modestly higher after the release of mixed economic data. The Shanghai Composite index edged up 0.29%, after official data showed China's economy expanded by 5% in 2025, meeting the government's annual growth target.

Back here, and the S&P/NZX50 was led down significantly towards the end of the day - dropping 1% - when China’s latest birth rate data was issued, showing last year’s birth rate was the lowest on record. The reason was this statistic’s likely impact on the sale of infant milk. A2 Milk plunged 11.15% on the news.

In Sydney, A2 Milk shares fell 11.70% and were subject to a trading halt after the Chinese birth rate news, unlike those on this side of the Tasman.

A2 will report its interim results on February 16.

Other business news in the day included a warning that the days of inexorable property value hikes might be over, while Prime Minister Christopher Luxon made his scene-setting “State of the Nation” speech, warning that there would not be pricey promises made to voters this year.

Significant stocks declined, including Fisher & Paykel Healthcare, Ebos, Mainfreight and Fletcher Building. Infratil bucked the trend, gained 0.18%.

Decliners on the main board included New Talisman Gold Mines, which dropped 4.17% on Monday. Smart Bitcoin EFT fell 4.15% following a plunge in Bitcoin prices - they dropped almost US$3,500 as Europe mulled how to respond to threats of trade tariffs if the continent did not support the US acquisition of Greenland.

Vulcan Steel dropped 3.90% - the New Zealand Superannuation Fund dropped its holding in the company to 5.65% from 6.668%. Michael Hill International dropped 3.16%.

Greenland is back in the headlines as US President Donald Trump pushes to takeover the Danish self-governing island nation.

Gainers on Monday included Locate Technologies, up 9.59%, representing a recovery from a drop in early January. Rua Bioscience gained 8.57%, New Zealand King Salmon advanced 7.32% and Santana Minerals gained 5.53%.

In Sydney the S&P/ASX 200 dropped 0.33% on Monday - led down by A2 Milk, as above, as well as a 7.49% drop in surveillance app Life360 Inc, which lost 7.49% following a similar decline by the company’s Nasdaq-listed shares on Friday night, driven by broad weakness in the tech sector.

While we slept

Shares of some of Europe’s biggest carmakers have tumbled on Trump’s tariff threat over Greenland. Stoxx Automobiles and Parts index traded 2% lower on Monday, while Germany’s Volkswagen, BMW, and Mercedes-Benz Group moved between 2.5% to 3% lower. Shares of Milan’s Ferrari dropped 2.2%, and shares of Germany’s Porsche fell 3.2% on news the US President plans to impose 10% tariffs on Britain, Denmark, Norway, Sweden, France, Germany, the Netherlands and Finland by February 1, ramping up his efforts to make Greenland, a self-governing Danish territory, part of the United States.

Gold and silver have surged to fresh highs as investors digest Trump’s push for Greenland, CNBC reports. Geopolitical and economic uncertainty is driving investors to safer assets. US gold futures rose 1.71% to US$4,674.20 per ounce on Monday, and spot gold rose 1.6% to US$4,668.14. Meanwhile, silver futures advanced to a record US$93.035 per ounce and silver’s spot price rose 3.55% to US$93.16 per ounce. The precious metals perform well in periods of heightened uncertainty as riskier assets, such as equities, fall out of favour.

What’s up today

In today’s The Post, Aimee Shaw reports Woolworths has struck a deal to use Google AI in chatbot, and how shopping for groceries will soon get even easier. Tom Pullar-Strecker reports there has been little interest in oil and gas exploration permits, and fears rise over how long inflation can remain near 3% before the Reserve Bank opts to get tough. Martin Hawes writes about the value of experience only age can bring.

Property developer Winton will today announce its interim results.