Global markets are rising after Donald Trump backed off from threatening to impose tariffs on European countries and said he is close to a framework deal on Greenland.
After rallies in Asia, the markets of America and Europe are expected to open with gains on Thursday. Gold fell nearly 1 percent in early trade while the US dollar and long-term US Treasury bonds were steady.
The move came after the US President said in a speech in Davos that he would not use military force to seize Greenland from Denmark. He urged Europe to support his plans for the Arctic island.
Trump later said he had an outline for a future agreement after talks with NATO Secretary General Mark Rutte. The US President said his threat to impose tariffs on eight European countries that oppose the US takeover of Greenland was “off the table”.
The S&P 500 rose 1.2 percent on Wednesday after Trump’s comments, a day after his tariff threats resulted in the index’s worst day since October.
EU leaders are still set to hold an emergency summit in Brussels on Thursday to resolve the crisis over Greenland.
Trump is focusing his attention on the war in Ukraine in talks with Ukrainian President Volodymyr Zelensky in Davos today. The US President is also expected to unveil his “Peace Board”, his plan for greater US influence on foreign affairs.
