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Markets rallied after US President Donald Trump called off tariffs on European allies on Wednesday following his speech at the World Economic Forum in Davos. However, the relief proved short-lived, suggesting that while levies and military action were ruled out, lingering concerns over a potential Greenland takeover and Fed intervention at home continued to weigh on investor sentiment. Sponsored Sponsored Global Markets Experience Short-Lived Relief Shortly after Trump walked back earlier promises to impose tariffs on eight European countries, Bitcoin reclaimed the $90,000 level. The move reflected investor relief amid signs of de-escalation following a volatile week. US equities also stabilized. The S&P 500 rose 1%, recovering part of the 2.1% decline recorded a day earlier after Trump’s original tariff announcement. The Nasdaq posted similar gains. Meanwhile, the Dow Jones Industrial Average jumped 550 points. The relief, however, appeared short-lived. The dollar remained under pressure, edging lower against both the euro and the yen. Demand for gold also remained firm, with prices hovering near $4,839, up around 1% from the previous day. Despite Trump’s tariff reversal and his assurance that the United States would not use force to acquire Greenland, investor confidence remains fragile. The remarks did little to ease broader concerns about geopolitical risks and policy uncertainty, which continue to shape market sentiment. Sponsored Sponsored Greenland Push Meets Fed Independence Fears Trump’s firm push for the United States to acquire Greenland did little to fully eliminate uncertainty. Though the president disclosed on social media that the United States and Europe had “formed the framework of a future deal,” the deal has not yet been closed, and its details remain unknown. If it falls through, Trump already anticipated that consequences would follow if the European Union failed to meet US demands. “We want a piece of ice for world protection. You can say…

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Filed under: News - @ January 22, 2026 1:25 am