European Shares Likely To Extend Losses On Greenland Jitters, Global Bond Rout

European stocks are seen opening on a sluggish note Wednesday as tensions over Greenland escalated.

U.S. President Donald Trump shared altered images on his social media platform, Truth Social, that depict Greenland, Canada and even Venezuela as part of the United States – reigniting tensions over his Arctic strategy and territorial ambitions.

Hours before his speech at the World Economic Forum, which he is attending for the first time in six years, Trump warned the Nato alliance that it was only as strong as the United States allowed it to be.

Trump said Tuesday that he would not travel to Paris for a proposed emergency meeting of the Group of Seven (G7) countries, citing doubts about French President Emmanuel Macron’s political future.

The European Parliament is planning to suspend approval of the EU-U.S. trade deal agreed last July, with a formal announcement expected later in the day.

EU leaders are set to hold an emergency summit in Brussels Thursday, and the bloc has to overcome political divisions to retaliate.

U.S. stock futures ticked higher, a day after the S&P 500 posted its steepest loss since October on concerns about the row over Greenland.

Global funds are pulling back from American assets, with media reports suggesting that a Danish pension fund is planning to exit Treasuries by the end of the month.

Danish pension fund AkademikerPension, which held about $100 million in U.S. Treasuries at the end of 2025, reportedly plans to exit U.S. Treasuries due to Trump’s threats over Greenland, fiscal concerns and a weakening dollar.

Meanwhile, a jump in Japan’s borrowing costs to all-time highs rippled through major bond markets, adding to economic uncertainty in financial markets.

Japan’s government bond market liquidity deteriorated to record levels amid intensifying selling pressure due to concerns about Prime Minister Sanae Takaichi’s plans to cut taxes and boost spending.

Asian markets traded lower and the dollar index was slightly lower, reflecting unease over erratic U.S. foreign policy.

Spot gold surged past the psychological milestone of $4800 an ounce for the first time, hitting a high of $4,874.20 in early Asian trade.

Oil prices fell nearly 1 percent as risks from Kazakh production halt subsided.
Overnight, U.S. stocks tumbled as investors weighed inflation risks amid escalating trade uncertainty.

Losses were widespread as President Trump doubled down on his bid take control of Greenland and threatened to impose trade tariffs on several European countries that oppose his plan, claiming the annexation of Greenland is key to national and world security.

The S&P 500 plummeted 2.1 percent, marking its steepest drop for the benchmark index since October. The Dow fell 1.8 percent and the tech-heavy Nasdaq Composite plunged 2.4 percent.

European stocks ended firmly in the red on Tuesday amid trade war jitters. The pan European Stoxx 600 declined 0.7 percent.

The German DAX lost 1 percent, France’s CAC 40 gave up 0.6 percent and the U.K.’ FTSE 100 shed 0.7 percent.

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