The US market reacted positively to the announcement by US President Donald Trump that a framework for a future agreement on Greenland has been reached. This is reported by the news agency Reuters.
During the World Economic Forum in Davos, Switzerland on Wednesday, Trump said that he had spoken to NATO Secretary General Mark Rutte and that a tariff that he had announced on eight European countries from February 1 would not be introduced anyway.
Wall Street stocks then jumped. The benchmark index S&P 500, which is the 500 largest listed companies in the US, recorded its biggest percentage increase in a single day since November 24. The Dow Jones rose 1.21 percent, the S&P 500 rose 1.16 percent and the technology index Nasdaq Composite rose 1.18 percent.
The reason for the increase is that uncertainty is now gone, says Matthew Smart, director of financial planning and portfolio analysis at WWM Investments in Chicago, USA.
- The signal from Donald Trump from Davos is to coordinate instead of confront, and that matters, Smart said, according to Reuters.
Wednesday's market contrasts with Tuesday, when Wall Street stocks fell 2.1 percent, interest rates rose and the dollar fell. Philip Jagd, head of equities at Sampension, describes the market's reaction to MarketWire as "a sigh of relief."
- All other things being equal, the fact that the tariff threat has been taken off the table can also be expected to have a positive impact on Danish stocks on Thursday, he says.
In Denmark, the C25 index fell by 0.4 percent on Wednesday, with Novo Nordisk falling the most, with a drop of over 4 percent. In general, the market has begun to be more resistant to Trump's whims, says Mark Hackett, chief market strategist at Nationwide in Boston.
- After the events of last April, investors have begun to realize that his negotiating style is very different from previous administrations, so uncertainty is a natural result, he says.
He is referring to Trump imposing tariffs on almost every country in the world in April last year.
/ritzau/
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