Davos: Risk appetite in global markets surged as US President Donald Trump announced at the World Economic Forum (WEF) in Davos, Switzerland, that he would not impose tariffs on Greenland. Trump emphasized the island's strategic importance for national security and expressed a desire to initiate urgent negotiations for its acquisition, ensuring that no force would be used to gain control.
According to Anadolu Agency, Trump's statements have eased concerns surrounding Greenland's future. He revealed that he met with NATO Secretary General Mark Rutte to discuss a framework for a potential deal involving Greenland and the Arctic region. In response to these developments, Trump decided against imposing tariffs on European nations due to their positions on the Greenland issue.
Previously, Trump had planned to implement Greenland-related tariffs on February 1, with a 10% tariff announced on several European countries, including Denmark, Norway, and others. This rate was expected to rise to 25% by June 1. The decision to hold back on tariffs has contributed to market optimism.
In the United States, a Supreme Court case concerning the dismissal of Fed Board Member Lisa Cook by Trump has captured attention. During a hearing, Judge Brett Kavanaugh remarked that Cook's dismissal without judicial review could undermine the Federal Reserve's independence. Optimism is growing that the court may prevent Trump from dismissing Cook.
In light of these economic and geopolitical developments, major US indices such as the S and P 500, Nasdaq, and Dow Jones saw increases of 1.16%, 1.18%, and 1.21%, respectively. Additionally, American futures began Thursday on a positive note.
The US 10-year bond yield experienced fluctuations, reaching its highest point since August 2025 due to tariff war concerns, but later decreased after Trump's Greenland tariff decision. Meanwhile, gold prices experienced volatility, peaking at $4,888.14 before declining slightly to $4,825 per ounce.
The US Dollar Index rose slightly on Wednesday, while Brent crude oil prices saw a modest increase. In Europe, stock markets experienced mixed results, with some gains following Trump's tariff withdrawal.
In Asia, easing tariff tensions led to mixed market trends. Japan witnessed a shift from declining indexes to a buying trend, as Premier Sanae Takaichi is expected to dissolve the lower house for an upcoming snap election. The Bank of Japan is anticipated to maintain its policy rate, with investors awaiting further guidance.
Japan reported a trade surplus below expectations for December 2025. Consequently, Japanese and South Korean markets saw gains, while Chinese markets experienced slight declines.
In Turkey, investors are closely monitoring the Central Bank's upcoming monetary policy decision, expected to impact market dynamics.