"Trump's retreat from his tariff threats is fuelling a relief rally on markets. The Footsie has surged in a sigh of relief as icy geopolitics relations defrost. The DAX in Frankfurt and CAC 40 in Paris are also sharply higher as fractious relations turn friendlier. Not only has the threat of forced annexation hanging over Greenland evaporated, but the President's claims that a 'framework' has been agreed about the future of the island, indicating rollback in his demand to take over the territory."
"While the details of this are scant, it appears that mounting opposition among NATO members, and crucially in the Republican party have prompted the climb down in the aggressive stance. Once again US strategy has followed a well-worn pattern - unleash deep threats and try and get compromises to edge forward US interests, which are likely to amount to increasing US military presence in the region and gaining access to crucial minerals."
FTSE 100 surged as US tariff threats eased, with CAC 40 and DAX also rising sharply in a relief rally. Gold initially fell but began edging higher as investors maintained safe-haven positions amid persistent geopolitical volatility. A better-than-expected reading on UK government finances eased some domestic pressure. With near-term inflationary risks receding, further gains are expected on Wall Street. Opposition within NATO and the Republican Party contributed to a climb-down over Greenland, while US strategy appears aimed at expanding military presence and access to strategic minerals. Europe remains cautious, keeping anti-coercion options in reserve.
Read at London Business News | Londonlovesbusiness.com
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