US markets rebounded Wednesday after President Donald Trump eased Europe’s most urgent fears over Greenland, a day after rising tensions sparked a selloff.
The recovery suggested the flight from dollar-based assets has calmed, as investors cheered a possible deal over Greenland and Trump’s toned-down rhetoric.
“Uncertainty just got priced out,” one analyst said, with Trump signaling a shift to “coordination, not confrontation.”
The president had appeared frustrated by Tuesday’s rout, which threatened to eclipse his efforts to bring down the cost of living, Semafor’s US politics team noted.
But transatlantic economic tensions remain elevated. European lawmakers on Wednesday suspended the approval of the US-EU trade deal agreed last year.
AD