Safety trade returns amid increased geopolitical tensions.

U.S. Equity Index futures are trading lower following disappointing factory orders and rising geopolitical tensions. While German business sentiment showed improvement, concerns over escalations in the Middle East have pushed crude oil toward multi-year highs. Investors are flocking to safe-haven assets, driving significant gains in gold and silver as U.S. yields soften. Looking ahead, the focus shifts to central bank commentary from the ECB and the Fed, alongside the upcoming State of the Union address. The market is also bracing for the People's Bank of China rate decision and key U.S. housing and consumer confidence data, while a heavy slate of corporate earnings from the energy and retail sectors continues to influence sentiment.