Global stock markets rallied strongly as U.S. President Donald Trump backed away from his threat to impose tariffs on European countries over the Greenland dispute.
At the World Economic Forum in Davos, Trump announced a “framework” for a future deal involving Greenland and the broader Arctic region, following discussions with NATO Secretary General Mark Rutte.
He explicitly ruled out using military force to acquire the semi-autonomous Danish territory and confirmed that the planned tariffs—set to begin in February—would not proceed.
This de-escalation eased investor fears of a renewed trade war and heightened geopolitical tensions, boosting risk appetite. European stock futures rose about 1%, Asian shares climbed, U.S. equity futures gained, and semiconductor stocks surged, with Nvidia supplier Disco Corp. jumping 17% in Japan and Samsung advancing.
The improved sentiment reduced demand for safe-haven assets such as gold, which fell 0.2%, while the dollar remained broadly stable.
In Australia, the three-year yield hit a multi-year high after unexpectedly lower unemployment data fuelled rate-hike expectations. Cryptocurrencies, including Bitcoin, dipped slightly around $90,000 amid delays in U.S. crypto legislation.
Details of the Greenland “framework” remain vague, with Denmark continuing to reject any cession of the island, and Trump promising to release further specifics soon.
U.S. final GDP, unemployment claims, and the core PCE price index are the main data points today, alongside New Zealand CPI later this evening.
