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Morning Bid: Sell America, sell Japan
Published by Global Banking and Finance Review
Posted on January 20, 2026
2min read
Last updated: January 20, 2026
Quick Summary
Market sentiment shifts in the U.S. and Japan amid geopolitical tensions, impacting global markets and investor outlook.
Market Overview and Key Developments
A look at the day ahead in European and global markets from Tom Westbrook
Impact of U.S. Market Resumption
Fresh “sell America” sentiment put some pressure on Treasuries in Tokyo, while investors wait to see how U.S. markets respond to transatlantic tension over Greenland.
European Equities Downgrade
U.S. markets resume trade, having been closed for a holiday when the rest of the world sold stocks and the dollar in response to President Donald Trump threatening tariffs on European allies opposing his push to control the Danish arctic territory.
Japanese Economic Concerns
Trump has told Norway’s Prime Minister by text that he no longer feels obliged to “think purely of Peace” because he was not awarded this year’s Nobel Peace Prize.
Ten-year Treasury yields rose 2.4 basis points in the Asia session and equity suggests a fall at the open.
Investors have been exhausted by a year of shock-and-awe policy shifts and are now waiting on Europe’s response, to be decided at an emergency meeting of EU leaders on Thursday to assess how scarifying Trump’s threats may be.
Citi on Tuesday downgraded European equities on the basis of uncertainty clouding the outlook for earnings.
Elsewhere, Japanese yields speared higher and demand at a 20-year debt auction faltered as Prime Minister Sanae Takaichi takes Japan to an early election in February. Debt investors fret that talk of tax cuts and a mandate to spend don’t bode well for the state of future government finances.
The yen has missed out on much of a boost from this week’s broad dollar selling and hovered near 158 to the dollar.
Key developments that could influence markets on Tuesday:
– U.S. markets return from holiday
– World Economic Forum at Davos
– German ZEW survey
(Reporting by Tom Westbrook; Editing by Himani Sarkar)
Key Takeaways
- •U.S. and Japan face market sentiment shifts.
- •Treasuries in Tokyo under pressure due to U.S. tensions.
- •European equities downgraded by Citi.
- •Japanese yields rise amid early election talks.
- •Global markets await EU response to Trump’s threats.
Frequently Asked Questions about Morning Bid: Sell America, sell Japan
1What is market sentiment?
Market sentiment refers to the overall attitude of investors towards a particular security or financial market. It is often influenced by news, economic indicators, and market trends.
2What is an equity downgrade?
An equity downgrade occurs when a financial analyst or rating agency lowers its rating on a stock or equity, indicating a less favorable outlook for the company’s performance.
3What is the significance of the yen in global markets?
The yen is a major currency in global markets, often used as a safe haven during economic uncertainty. Its value can significantly impact trade and investment flows.
