New York (AFP) – Stocks mostly steadied Wednesday as markets digested shifting comments from US President Donald Trump that dialed down tensions with Europe over Greenland. After Tuesday’s equity market weakness following Trump’s tariff threats against Europe over Greenland, US stocks opened the day in positive territory after the Republican leader told a World Economic Forum address that he “won’t use force” to take over Greenland.
But Trump still insisted on “immediate negotiations,” slamming “ungrateful” Denmark for refusing to give up the territory. Equities moved solidly higher around 1930 GMT Wednesday, after Trump removed the tariff threat, saying he reached a “framework” for a deal over Greenland following a meeting with NATO chief Mark Rutte. Major US indices finished solidly higher, with the S&P 500 up 1.2 percent. The dollar also advanced against the euro and other currencies.
“Time will tell if the framework ultimately amounts to any substantive changes, but from traders’ perspective, the proximate cause for concern (an escalating trade or military conflict between the US and Europe) has passed,” said a note from Matt Weller of Forex.com. Markets have tumbled this week after Trump threatened tariffs up to 25 percent on several European countries — including France, Germany, Britain and Denmark — in response to their opposition to his plans to take Greenland.
Trump’s threats had sparked warnings of retaliation at the World Economic Forum meeting in Davos, with European Union chief Ursula von der Leyen saying that the 27-nation bloc would be “unflinching” in its response. The controversy has revived talk of the “Sell America” trade after the yield on US Treasury notes moved higher in an echo of the market’s reaction to a Trump policy announcement on tariffs in April 2025 that the White House later partially walked back.
“For a while there, it seemed like we were going to be in for sort of a repeat of last April,” said David Grecsek of Aspiriant. “There’s definitely some concern on the part of the markets that some of these foreign policy can unravel confidence in US assets.”
In Europe, London and Paris closed marginally higher, while Frankfurt fell. In Asian trading earlier Wednesday, Tokyo’s stock market fell, while Hong Kong and Shanghai rose. Among individual companies, Netflix fell 1.9 percent despite strong earnings, as it gave only muted guidance for future growth. In company news, shares in British luxury fashion label Burberry jumped five percent in London after it posted a rise in sales as demand from China improved.
In Paris, food group Danone slumped more than eight percent after one of its infant milk brands was recalled in Singapore.
– Key figures at around 2115 GMT –
New York – Dow: UP 1.2 percent at 49,077.23 (close)
New York – S&P 500 UP 1.2 percent at 6,875.62 (close)
New York – Nasdaq composite UP 1.2 percent at 23,224.82 (close)
London – FTSE 100: UP 0.1 percent at 10,138.09 (close)
Paris – CAC 40: UP 0.1 percent at 8,069.17 (close)
Frankfurt – DAX: DOWN 0.6 percent at 24,560.98 (close)
Tokyo – Nikkei 225: DOWN 0.4 percent at 52,774.64 (close)
Hong Kong – Hang Seng Index: UP 0.4 percent at 26,585.06 (close)
Shanghai – Composite: UP 0.1 percent at 4,116.94 (close)
Euro/dollar: DOWN at $1.1683 from $1.1725 on Tuesday
Pound/dollar: DOWN at $1.3418 from $1.3439
Dollar/yen: UP at 158.43 yen from 158.15 yen
Euro/pound: DOWN at 87.08 pence from 86.07 pence
West Texas Intermediate: UP 0.5 percent at $60.62 per barrel
Brent North Sea Crude: UP 0.5 percent at $65.24 per barrel
© 2024 AFP
