Global Markets Recover as Trump Eases Geopolitical Tensions

Global stocks rose after President Trump calmed geopolitical concerns by ruling out forcibly taking Greenland and dropping tariffs on European countries. This led to positive movements in major indices like the STOXX 600 and lifted Wall Street markets. Investors remain cautious, eyeing gold and geopolitical developments.

Global stocks showed recovery on Thursday as President Donald Trump cooled geopolitical tensions. He renounced plans to seize Greenland by force while also revoking tariff threats against several European countries. These actions drove the STOXX 600 up by over 1%, with Wall Street continuing its positive trend after a strong rally on Wednesday.

In a statement at Davos, Trump assured audiences of opting for diplomatic over aggressive measures regarding Greenland, adding that the import tariffs proposed on eight European allies won't be imposed. Moreover, he claimed a deal with NATO allowing U.S. access to Greenland's resources. These diplomatic gestures contributed to markets stabilizing.

While the dollar initially recovered following Trump's announcements, it declined in European trading. At the same time, gold prices softened from their record highs. Financial analysts suggested that market focus is shifting back to fundamentals such as U.S. interest rates, while data points like unemployment figures remain strong. Despite the advancement in talks, lingering caution among investors had them keeping a close watch on gold and related geopolitical developments.

(With inputs from agencies.)