Transatlantic Tensions Rock Global Markets Amid Trump's Greenland Ambitions

Global markets feel the pressure as the 'sell America' sentiment affects U.S. Treasuries, spurred by President Trump's controversial Greenland negotiations and tariff threats against Europe. Key developments include a slump in European equities, rising Japanese yields, and upcoming EU and U.S. economic assessments.

European and global markets are on edge following a fresh 'sell America' sentiment impacting U.S. Treasuries in Tokyo, as investors anticipate U.S. market reactions to rising transatlantic tensions over Greenland.

The tension stems from President Donald Trump's controversial threats to impose tariffs on European allies opposing his ambitions to control Greenland, leading to a sell-off of stocks and the dollar globally. The situation escalated after Trump expressed his discontent with not receiving the Nobel Peace Prize, claiming he no longer feels obliged to focus purely on peace.

Citi has downgraded European equities due to the uncertain earnings outlook, while Japanese yields are on the rise as Prime Minister Sanae Takaichi announces an early election, causing concern among debt investors. Key developments include the U.S. markets reopening post-holiday and economic insights from the World Economic Forum at Davos and the German ZEW survey.

(With inputs from agencies.)