Synopsis
Asian stocks rose, mirroring Wall Street’s gains, as President Trump’s comments on a “framework agreement” on Greenland eased market concerns. Precious metals fell, while gold and silver fell. The US president’s remarks signaled a de-escalation of geopolitical and trade tensions, leading to a return of risk appetite in stocks.
TIL CreationsTrump’s decision marks a radical turnaround for a president who has repeatedly tried to force Europe to seize Greenland. This follows a meeting with North Atlantic Treaty Organization Secretary General Mark Rutte in Davos.
Asian stocks followed Wall Street higher after US President Donald Trump’s comments on a “framework” deal with NATO on Greenland eased concerns that had fueled market volatility. Gold and silver fell.
Stocks rose in Japan, South Korea and Australia, signaling that a regional stock gauge was on the verge of ending a three-day losing streak. This came after US indices jumped following indications that new tariffs would not be imposed on European countries. Equity index futures for U.S. benchmarks rose more than 0.2% in early Asian trading, suggesting stocks could extend their advance.
Precious metals fell, with gold falling 1% and silver 2%. Bitcoin traded below $90,000 as the bill for the US crypto market will likely be delayed by at least several weeks.
Elsewhere, 10-year Treasury yields were steady in early Asian trading after falling five basis points to 4.24% in the U.S. session as bond market volatility eased. A $13 billion 20-year bond auction in the United States met strong demand. The dollar rose slightly.
Risk appetite returned to stocks after Trump ruled out the use of military force and said he would refrain from imposing tariffs on European countries opposing his efforts to take control of Greenland. Investors interpreted the comments made at the World Economic Forum in Davos as a sign of easing geopolitical and trade tensions.
“The framework of the Greenland deal lowers the temperature considerably, given the events of the weekend,” said Joe Gilbert, portfolio manager at Integrity Asset Management. “A reduction in customs tariffs is unequivocally positive for the markets. »
The S&P 500 rose 1.2% on Wednesday, erasing its losses for the year, while an index of Chinese companies listed in the United States gained 2.2%. The Nasdaq 100 jumped 1.4%. Small caps beat the U.S. equity benchmark for a 13th straight session. Big tech has also grown.
Trump’s decision marks a radical turnaround for a president who has repeatedly tried to force Europe to seize Greenland. This follows a meeting with North Atlantic Treaty Organization Secretary General Mark Rutte in Davos.
However, Trump did not detail the parameters of the so-called “framework” and it is unclear what the agreement entails, especially since Denmark on Wednesday ruled out any negotiations on ceding the semi-autonomous island to the United States.
Treasury Secretary Scott Bessent encouraged U.S. allies, angered by Trump’s threats, to “sit down” and “take a deep breath,” avoiding retaliation. Commerce Secretary Howard Lutnick announced the retreat during a panel in Davos, telling world leaders and business titans that the situation was “going to end in a reasonable way.”
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(What’s moving Sensex And Clever Track latest market news, stock market advice, Budget 2025, Equity market on the 2025 budget And expert adviceon AND Markets. Additionally, ETMarkets.com is now on Telegram. For the fastest news alerts on financial markets, investment strategies and stock market alerts, subscribe to our Telegram feeds .)
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Most trending stocks: SBI share price, Axis Bank share price, HDFC Bank share price, Infosys share price, Wipro stock price, NTPC stock price
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