Market Turmoil: Global Shares Slide Amid Bond Rout and Geopolitical Tensions

Global markets faced significant volatility as shares fell due to a bond market rout and geopolitical tensions, particularly stirred by U.S. policies on Greenland and potential tariffs on Europe. Investors fled to the safety of gold, while bond markets attempted recovery amidst fears of increased Japanese government spending.

Global shares have taken a hit for the fourth consecutive day amidst heightened market stress caused by a sweeping global bond selloff and geopolitical frictions. U.S. President Trump's persistence on acquiring Greenland and threats of further tariffs have kept investors on edge just before his speech at the World Economic Forum in Davos.

This instability compelled investors to seek refuge in gold, which saw prices soar to a record high. Market participants remain apprehensive about U.S. unpredictability and its effect on global trade relations, especially with Europe. The European Union is set to hold an emergency summit to address rising tension in their relationship with the U.S.

Wall Street futures predicted a slight opening rise while bond markets, particularly in Japan and the U.S., struggled to stabilize. Currency exchanges also saw shifts, with the U.S. dollar recovering slightly after a previous dip, as oil prices drifted lower due to geopolitical risks and anticipated increases in U.S. crude inventories.

(With inputs from agencies.)