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21 Jan 2026

Markets rally as Trump backs down on Greenland

Markets are celebrating TACO Tuesday on a Wednesday after US President Donald Trump dropped a threat to impose tariffs on imports from a number of European trading partners, saying that he and NATO Secretary-General Mark Rutte had “framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region”. The dollar is climbing against its peers, while the Swiss franc falls amid a broader surge in risk appetite. Equity markets are rallying and US yields are edging lower. In a post on his social media platform, the president said: “Based upon a very productive meeting that...

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Selloff loses steam, traders remain on tenterhooks

After several days of turbulence, selling pressure is easing across financial markets, suggesting that investors expect US president Donald Trump to adopt a less confrontational approach when meeting in person with his counterparts at the World Economic Forum in Davos later today. The dollar is steadying against its peers, Treasury yields are stabilising near recent highs, and equity futures are pointing to a modest advance when North American markets open. Scarring will remain. For the second time in a year, markets have warned that the consequences of the president’s actions could weigh most heavily on the United States itself, not...

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