Global Stocks Slide as Greenland Dispute and Bond Rout Rattle Markets – Europe Market Wrap
Equities extended their selloff as the standoff between the US and Europe over control of Greenland showed no sign of de- escalation, while heavy selling in Japanese debt rippled through global bond markets.
A 1.4% slump in S&P 500 futures from Friday’s close left the benchmark poised to wipe out year-to-date gains. European stocks fell 1.3%, adding to losses after the Stoxx 600’s worst day in two months. Nasdaq 100 contracts sank 1.7%.
US President Donald Trump’s push to take control of Greenland has injected fresh volatility into markets, reviving fears of a trade confrontation between traditional allies with little sign of compromise. Adding to tensions, Trump overnight threatened to impose steep tariffs on champagne after French President Emmanuel Macron ruled out joining a US-led peace initiative.
US President Donald Trump’s push to take control of Greenland has injected fresh volatility into markets, reviving fears of a trade confrontation between traditional allies with little sign of compromise. Adding to tensions, Trump overnight threatened to impose steep tariffs on champagne after French President Emmanuel Macron ruled out joining a US-led peace initiative.
Longer-term Treasury yields spiked after a meltdown in Japanese bonds, sending the 30-year US rate up nine basis points to 4.93%. Investors balked at Prime Minister Sanae Takaichi’s election pitch to cut taxes on food, pushing Japan’s 40-year rate to a fresh high.
Precious metals were the main beneficiary of Tuesday’s turmoil as investors sought safety. Gold topped $4,700 an ounce for the first time while silver also hit a fresh record. A gauge of the dollar fell 0.4% and the Swiss franc headed for its biggest two-day advance since April.
