Futures linked to the major U.S. stock indices point down as traders gauged the likelihood that the U.S. would slap fresh tariffs on a host of European countries over Greenland. President Donald Trump says he will hold meetings on Greenland during a visit to an annual economic forum in Switzerland, while European leaders weigh their potential responses to Trump’s demand for American ownership of the territory. Back in the U.S., the Supreme Court could unveil a ruling on the legality of Trump’s tariffs. Elsewhere, Netflix is due to report its latest results.

1. Futures dip

U.S. stock futures were lower on Tuesday, suggesting a negative start to a shortened trading week fueled by tensions over Greenland.

By 03:07 ET (08:07 GMT), the Dow futures contract had fallen by 677 points, or 1.4%, S&P 500 futures had dipped by 102 points, or 1.5%, and Nasdaq 100 futures had slumped by 449 points, or 1.8%.

The main averages on Wall Street were closed on Monday for Martin Luther King Jr. Day.

Still, the impact of President Donald Trump’s threat to slap fresh tariffs on several European countries until the U.S. is allowed to take ownership of Greenland weighed on sentiment around the world. Globally, stock markets have retreated to begin the trading week, reflecting jitters around the implications of the levies, which Trump has said will start at 10% and could rise to as much as 25% in June if his demands for the semi-autonomous Danish territory are not met.

Analysts at Capital Economics estimated that, should they be implemented and sustained for a long period, the tariffs could cost the Eurozone currency area “something between” 0.2% and 0.5% of gross domestic product, hitting traditional European powerhouse Germany particularly hard.

“In practice though, we doubt that they will be implemented as advertised. We also think the [European Union] will be cautious in any retaliation in an effort to avoid further escalation,” the analysts said.

2. Trump says he will hold Greenland meeting at Davos

Trump suggested that he would hold talks on Greenland during his visit to the World Economic Forum’s annual event in Davos, Switzerland this week.

On social media, Trump said he had held a “very good” call with North Atlantic Treaty Organization head Mark Rutte, who has long worked to keep the president on board with the longstanding alliance.

The president, who is due to speak at the yearly Alpine confab of business executives and global leaders on Wednesday, added that he would meet with “various parties” during the trip -- although he did not specify who exactly he will speak with.

“As I expressed to everyone, very plainly, Greenland is imperative for National and World Security. There can be no going back — On that, everyone agrees!” Trump wrote.

European countries have reportedly been deliberating over how best to respond to the Greenland crisis, mulling over potentially rolling out steep tariffs on 93 billion euros worth of U.S. goods. France and Germany have also urged the EU to consider implementing an instrument designed to deter economic coercion, which could include other restrictions on investment or banking activity.

U.S. access to EU -- the world’s third-biggest economy -- may be restricted by this tool. As a result, this has been viewed as a “bazooka” option for the EU, creating a deep rift between the bloc and the U.S. after the two had reached a trade agreement last summer. The future of NATO hangs in the balance as well.

3. Potential Supreme Court tariff ruling ahead

Hovering in the background is a crucial -- and long-awaited -- Supreme Court ruling on the legality of Trump’s sweeping import tariffs on a raft of countries.

Trump has used a 1977 law called the International Emergency Economic Powers Act, or IEEPA, as justification for the levies. IEEPA gives the president broad powers over international economic transactions in the event of a national emergency.

However, justices expressed enough skepticism over the White House’s arguments at hearings late last year that markets are now widely anticipating the high court will rule against Trump.

Media reports have said the decision may come down as soon as Tuesday.

But U.S. Trade Representative Jamieson Greer told the New York Times in an interview published on Monday that, even if the Supreme Court strikes down the tariffs, administration officials are preparing new duties that would “start the next day.”

4. Gold’s fresh record high

Gold prices climbed to a fresh record high on Tuesday, as concerns over American demands for Greenland kept traders broadly risk-averse and pinned to safe havens.

Prices for the yellow metal, as well as silver, soared to all-time peaks earlier this week on Trump’s latest tariff salvo. But while silver saw some profit-taking on Tuesday, bullion remained relatively well-bid.

The uncertainty also saw traders sell the U.S. dollar, which in turn aided metal prices.

Spot gold rose 1.0% to $4,724.83 an ounce, while gold futures gained 3.0% to $4,730.50/oz by 03:49 ET.

5. Netflix to report

On the earnings calendar, Netflix is due to report its latest quarterly results after the closing bell on Wall Street on Tuesday.

According to Bloomberg consensus estimates, the streaming video giant is seen posting earnings per share of $0.55 on revenue of $11.96 billion.

But the numbers will likely take a back seat to any discussion around Netflix’s drive to purchase Hollywood stalwart Warner Bros. Discovery, a bid that has been rivalled by one from Paramount Skydance. The battle for Warner Bros is anticipated to drag on for months, and possibly become mired in regulatory scrutiny in both the U.S. and Europe.

Netflix has targeted Warner Bros, whose holdings include the HBO Max streaming unit and popular franchises like “Harry Potter” and “Friends”, to help boost revenues. Despite being bolstered by the success of series like “Stranger Things” and a foray into live sports programming, Netflix faces pressure to show returns from expensive bets on advertising and video games.