Global markets are rebounding after Donald Trump retreated from a threat to hit European countries with tariffs and said he was close to a framework deal over Greenland.
Markets in the US and Europe are expected to open higher on Thursday following rallies in Asia. Gold fell almost 1 per cent while the US dollar and long-dated US Treasury bonds were steady in early trading.
The moves came after the US president said in a speech at Davos that he would not use military force to seize Greenland from Denmark. He urged Europe to back his plans for the Arctic island.
Trump later said he had the framework of a future deal after talks with Nato secretary-general Mark Rutte. The US president said his threat to impose tariffs on eight European countries that opposed an American takeover of Greenland was “off the table”.
The S&P 500 jumped 1.2 per cent on Wednesday after Trump’s comments, a day after his tariff threats sparked the index’s worst day since October.
EU leaders are still set to hold an emergency summit in Brussels on Thursday to address the crisis over Greenland.
Trump is turning his attention to the war in Ukraine in talks in Davos today with Ukraine’s President Volodymyr Zelenskyy. The US president is also expected to unveil his “Board of Peace”, his plan for greater American influence over foreign affairs.