Market Reacts to Trump's Greenland Policy Reversal

MSCI's global equities gauge rose as investors leaned into riskier bets following Trump's shift in Greenland policy and stronger U.S. economic data. Wall Street indices saw gains, while the dollar dipped against risk-sensitive currencies. Energy prices fell, and gold surged due to geopolitical tensions.

Global markets experienced a notable shift on Thursday as MSCI's global equities gauge saw an uptick, spurred by U.S. President Donald Trump's decision to retract tariff threats against European countries regarding Greenland. Investors embraced riskier bets, bolstered by stronger-than-expected U.S. economic data.

Wall Street indices, including the Dow Jones, S&P 500, and Nasdaq, all posted gains, recovering from earlier losses. The dollar experienced a dip, while currencies like the euro and sterling strengthened. In the bond market, yields showed mixed responses as investors navigated potential future policy volatility.

Energy markets saw a decline in oil prices amid Trump's softened stance on Greenland, while gold prices surged to record highs due to ongoing geopolitical tensions and a softer dollar. Cryptocurrency markets also witnessed declines, with Bitcoin and Ethereum both experiencing downward trends.

(With inputs from agencies.)