The financial markets experienced gains on Thursday following U.S. President Donald Trump's decision to retract tariff threats and avoid a dispute over Greenland. Trump's declaration, 'I won't do that,' boosted investor confidence, causing Wall Street indexes to climb, with the S&P 500 achieving its largest increase in two months.
In the currency markets, a strengthened dollar pushed the euro down and saw gold prices drop from their previous highs. Meanwhile, equity benchmarks in regions like Australia, Japan, and South Korea, surged with increased investor optimism. Trump's discussions with NATO on potential Greenland agreements, however, lacked specific details.
The remarks alleviated concerns of a U.S.-NATO confrontation, affecting U.S. Treasury yields and the VIX index. Investors remain cautious, watching upcoming U.S. core PCE figures and earnings from companies like Intel and General Electric as markets anticipate future interest rate cuts.
