Stocks mostly steadied Wednesday as US President Donald Trump doubled down on his demands for “immediate negotiations” to take control of Greenland in a much-anticipated speech at Davos, though he did say he would not use force.
Markets have tumbled this week after Trump threatened tariffs up to 25 percent on several European countries — including France, Germany, Britain and Denmark — in response to their opposition to his plans to take Greenland.
In morning trading in New York as Trump was speaking in Davos, the main Wall Street indexes were slightly higher, though still well below last week’s levels. At midafternoon in Europe, Frankfurt was down while London and Paris were basically flat.
Trump’s threats have sparked warnings of retaliation at the World Economic Forum meeting in Davos, with European Union chief Ursula von der Leyen saying that the 27-nation bloc would be “unflinching” in its response.
In his Davos speech, Trump touted the strength of the US economy and stressed what he said are the security imperatives for having control of Greenland.
“Despite all the geopolitical noise, we’re not quite in full-blown panic mode yet,” said Fawad Razaqzada, an analyst at FOREX.com.
In Asian trading earlier Wednesday, Tokyo’s stock market fell, while Hong Kong and Shanghai rose.
In company news, shares in British luxury fashion label Burberry jumped five percent in London after it posted a rise in sales as demand from China improved.
In Paris, food group Danone slumped more than five percent after one of its infant milk brands was recalled in Singapore.
The dollar steadied after several downward sessions provoked by Trump’s tariff threats.
“The fear narrative ran ahead of reality,” said Stephen Innes, managing partner at SPI Asset Management.
“The idea of Europe dumping US assets en masse makes for a dramatic storyline, but it collapses under practical constraints. There are not enough deep alternative pools to absorb that kind of flow without severe dislocation.”
– Key figures at around 1440 GMT –
New York – Dow: UP 0.6 percent at 48,773.60 points
New York – S&P 500 UP 0.5 percent at 6,832.59
New York – Nasdaq composite UP 0.4 percent at 23,045.07
London – FTSE 100: UP 0.3 percent at 10,160.36
Paris – CAC 40: UP 0.2 percent at 8,080.08
Frankfurt – DAX: DOWN 0.6 percent at 24,545.35
Tokyo – Nikkei 225: DOWN 0.4 percent at 52,774.64 (close)
Hong Kong – Hang Seng Index: UP 0.4 percent at 26,585.06 (close)
Shanghai – Composite: UP 0.1 percent at 4,116.94 (close)
Euro/dollar: UP at $1.1730 from $1.1719 on Tuesday
Pound/dollar: UP at $1.3454 from $1.3433
Dollar/yen: DOWN at 158.09 yen from 158.21 yen
Euro/pound: DOWN at 87.21 pence from 87.23 pence
West Texas Intermediate: DOWN 0.15 percent at $60.29 per barrel
Brent North Sea Crude: DOWN 0.1 percent at $64.88 per barrel
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© Agence France-Presse
