Wall Street ended higher, with the S&P 500 posting its biggest one-day percentage gain in two months. The Dow Jones Industrial Average rose 1.21 per cent, the S&P 500 gained 1.16 per cent, and the Nasdaq Composite added 1.18 per cent. Both the Dow and Nasdaq achieved their largest percentage gains since early January and December, respectively.
Matthew Smart, director at WWM Investments, said the rally reflected reduced uncertainty rather than a clear outcome on Greenland. Investors responded positively to signals of coordination rather than confrontation.
MSCI’s All-World index rose 0.87 per cent, while Europe’s STOXX 600 finished slightly lower by 0.02 per cent. Britain’s FTSE index gained 0.11 per cent. The VIX index, a measure of market volatility, fell more than 15 per cent to 17, a day after reaching its highest level since November.
Meanwhile, the European Parliament suspended work on a US-EU trade deal following Trump’s repeated requests regarding Greenland. An emergency EU summit will be held in Brussels on Thursday to address the matter, raising concerns about the US-EU alliance.
Global bond markets also saw a recovery after a sharp selloff. Japanese long-term bonds rebounded, while US 30-year Treasury yields fell to 4.8693 per cent and 10-year yields eased to 4.251 per cent.
In currency markets, the dollar rebounded 0.25 per cent against a basket of major currencies. The euro fell 0.34 per cent to 1.1686, the Swiss franc declined 0.69 per cent, and the yen weakened 0.16 per cent to 158.37 per dollar ahead of a Bank of Japan policy meeting.
Oil prices rose slightly on supply concerns, with Brent crude up 0.49 per cent to US$65.24 per barrel, while spot gold gained 1.11 per cent to US$4,815.93 per ounce.
