Trump’s Greenland Push Triggers Global Selloff as EU Sets Response Meeting

Overview

• Trump set 10% tariffs on imports from Denmark and seven European countries starting Feb. 1, warned they will rise to 25% by June 1 without a deal, threatened 200% duties on French wines, and said there is “no going back,” declining to rule out force.
• Wall Street fell sharply with the Dow down 1.76%, S&P 500 2.06% and Nasdaq 2.39%, led by technology and consumer discretionary losses as Treasury yields climbed alongside turbulence in Japan’s government bond market.
• European equities closed lower (Stoxx 600 -0.72%), luxury stocks weakened on the threat to French wine and champagne, and EU leaders scheduled a Thursday meeting to discuss potential retaliation.
• Risk aversion lifted gold more than 3% and silver 7.6% as the dollar slipped against most majors (DXY -0.76%), while bitcoin dropped about 2.3% to around $90,851.
• Brazil benefited from a rotation out of U.S. assets, with the Ibovespa setting a record close near 166,277 even as local rates rose and the dollar ended at R$5.38.