US markets rebounded on Wednesday after President Donald Trump used his speech at the World Economic Forum in Switzerland to vow not to invade Greenland, one day after rising tensions sparked a selloff.
The recovery suggested the flight from dollar-based assets has eased somewhat, as investors fixated on what Trump didn’t say at Davos, one strategist told Bloomberg: “He didn’t reiterate his tariff threat against Europe… It felt like a dialing down of the substance even if the style was still pure Trump.”
The president had appeared frustrated by Tuesday’s market reaction, which threatened to eclipse his recent efforts to bring down the cost of living, Semafor’s US politics team noted.
But transatlantic tensions remain elevated, with Trump’s demand for Greenland still in play: European lawmakers on Wednesday suspended the approval of the US-EU trade deal agreed last year.