19th Jan 2026 06:57
(Alliance News) - Stocks in London are set to open lower on Monday, after US President Donald Trump threatened tariffs on European countries, including the UK, over their opposition to his plan to take over Greenland.
IG says futures indicate the FTSE 100 to open down 40.9 points, 0.4% at 10,194.39 on Monday. The index of London large-caps closed down 3.65 points at 10,235.29 on Friday.
Sterling was at USD1.3397 on Monday morning, up from USD1.3382 at the London equities close on Friday. The euro was higher at USD1.1627 from USD1.1596. Against the yen, the dollar was lower at JPY157.84 versus JPY158.06.
UK Chancellor Rachel Reeves will say that cutting red tape for firms listing their shares on the London stock markets is "reinvigorating" the City after early signs of a revival.
Reeves also set her hopes on the FTSE 100's standout year encouraging more Britons to get investing.
The chancellor's remarks coincide with the financial watchdog introducing new rules in the UK's capital markets on Monday.
The new measures lower costs and speed things up for UK businesses looking to secure investment.
"Two years ago, some said the City's best days were behind it. They were wrong," Reeves is expected to say at an event in the City of London on Monday. "As the FTSE 100 reaches record highs and global firms once again choose London, we are seeing the first signs of a new golden age for the City."
US President Donald Trump threatened to impose 25% tariffs on countries that don't support his plans to take over Greenland, an autonomous territory of Nato ally Denmark.
From February 1, Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland would be subject to a 10% tariff on all goods sent to the US, Trump said in a post on his Truth Social website.
"On June 1st, 2026, the tariff will be increased to 25%. This tariff will be due and payable until such time as a deal is reached for the complete and total purchase of Greenland," he wrote. Trump said countries who opposed him were playing a "very dangerous game" but that he was "open to negotiation".
"Tariff threats undermine transatlantic relations and risk a dangerous downward spiral," Britain, Denmark, Finland, France, Germany, the Netherlands, Norway and Sweden warned in a joint statement.
Denmark's Foreign Minister Lars Lokke Rasmussen said Trump's ultimatum threatened the world order "as we know it" and the future of the NATO military alliance.
NATO Secretary General Mark Rutte said he had spoken to Trump about "the security situation in Greenland and the Arctic" and hoped to talk again at this week's Davos summit. He did not elaborate on their conversation.
Aides to French President Emmanuel Macron said he would ask the EU to activate a never-before-used "anti-coercion instrument" against Washington if Trump makes good on his additional tariffs.
This measure allows for curbing imports of goods and services into the EU.
"Perhaps surprisingly, foreign exchange traders appear to be taking things relatively in their stride for the time being, with both the GBP and EUR little changed in early trade, and with just the slightest hint of haven demand for the CHF also making itself known. Conditions are, however, on the whole, more muted than one might've reasonably expected," said Pepperstone analyst Michael Brown.
"That said, one would still expect a relatively risk-averse open for equity futures a little later on this evening, while there is little to suggest that the recent rally in precious metals could take a pause for breath, with further gains in both gold and silver likely."
Brown added: "Clearly, participants' focus, once risk has been managed, and exposures trimmed as deemed appropriate, will relatively rapidly turn to what comes next. Potential European retaliation is the first area to watch here, with France pushing for use of the EU's 'anti coercion instrument', and EU ambassadors due to meet tonight."
US financial markets are closed on Monday for Martin Luther King Jr Day.
In the US on Friday, Wall Street ended down, with the Dow Jones Industrial Average 0.2% lower, while the S&P 500 and the Nasdaq Composite finished down 0.1%.
In Asia on Monday, the Nikkei 225 in Tokyo was down 0.7%. In China, the Shanghai Composite was 0.2% higher, while the Hang Seng Index in Hong Kong lost 1.1%. The S&P/ASX 200 in Sydney was 0.3% lower.
Back in the UK, the average price of UK homes coming to the market for sale in 2026 showed the largest ever increase for the month of January, property sales platform Rightmove reported.
The average price rose by 2.8% in January to GBP368,031 from GBP358,138 in December. This was not only the largest monthly rise for UK house prices of any January, Rightmove said, but also the biggest jump in any month since June 2015.
National average property prices are now 0.5% higher than a year ago, as prices rebounded after late November's UK government budget.
Gold was sharply higher at USD4,675.10 an ounce early on Monday from USD4,594.24 late Friday. Brent oil was trading lower at USD63.59 a barrel from USD64.48.
Monday's UK corporate calendar has a trading statement from building materials firm Marshalls.
In the economic calendar on Monday, inflation figures from the eurozone and Canada will be published.
By Michael Hennessey, Alliance News reporter
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.