London (AFP) – Stocks mostly steadied Wednesday as US President Donald Trump said in a much-anticipated speech at Davos that he would not use force to take control of Greenland, though he did demand “immediate negotiations” to take control of the Danish arctic territory. 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.
But “investors found some relief after President Donald Trump’s speech at Davos was less confrontational than anticipated,” said Patrick Munnelly, strategist at Tickmill Group. “Trump assured that no military action would be taken in the Greenland dispute, calming market nerves.” In Europe, London and Paris closed marginally higher, while Frankfurt fell. In late morning trading in New York, the main Wall Street indexes were up less than one percent, though still well below last week’s levels.
Trump’s threats have 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. In his Davos speech, Trump touted the strength of the US economy and stressed what he said are the security imperatives for having control of Greenland.
In Asian trading earlier Wednesday, Tokyo’s stock market fell, while Hong Kong and Shanghai rose. Netflix was down by more than 4 percent in New York 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.
The dollar steadied after several downward sessions provoked by Trump’s tariff threats. “The fear narrative ran ahead of reality,” said Stephen Innes, managing partner at SPI Asset Management. “The idea of Europe dumping US assets en masse makes for a dramatic storyline, but it collapses under practical constraints. There are not enough deep alternative pools to absorb that kind of flow without severe dislocation.”
– Key figures at around 1645 GMT –
New York – Dow: UP 0.8 percent at 48,864.95 points
New York – S&P 500 UP 0.6 percent at 6,837.51
New York – Nasdaq composite UP 0.5 percent at 23,064.68
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 $1.1707 from $1.1719 on Tuesday
Pound/dollar: UP at $1.3441 from $1.3433
Dollar/yen: DOWN at 158.13 yen from 158.21 yen
Euro/pound: DOWN at 87.16 pence from 87.23 pence
West Texas Intermediate: UP 0.1 percent at $60.46 per barrel
Brent North Sea Crude: UP 0.1 percent at $64.95 per barrel
© 2024 AFP
