US and EU Markets Decline as Greenland Tariff Threats Escalate

US markets experienced a downturn following threats from US President Donald Trump regarding potential tariffs on countries opposing his controversial proposal to acquire Greenland. On Friday, the S&P 500 fell by 0.06%, the Nasdaq also slipped 0.06%, and the Dow Jones decreased by 0.17%, concluding a week marked by volatility. Market sentiments were further strained by comments from the Trump administration hinting at the removal of Federal Reserve Chair Jerome Powell and ongoing tensions surrounding Iran.

The situation intensified over the weekend when threats related to Greenland became more pronounced, leading to a decline in European markets. The pan-European Stoxx 600 index finished 0.1% lower, reflecting the ripple effects of geopolitical tensions on investor confidence.

Mixed Reactions in Asian Markets

Asian markets closed before the escalation of the Greenland situation, with mixed results as they reacted to news that a US military strike on Iran was not imminent. The continent saw a boost from a recently concluded trade deal between the US and Taiwan, which positively impacted chip stocks. The Weighted Index in Taiwan surged by 1.94%.

In contrast, South Korea’s Kospi posted a modest gain of 0.09%, while Japan’s Nikkei 225 dipped by 0.32%. Companies within these nations benefited from the US-Taiwan agreement, yet broader market trends remained subdued. Hong Kong’s Hang Seng index fell by 0.48%, and China’s CSI declined by 0.41%.

Despite the international pressures, New Zealand reported some positive news on the manufacturing front, with the index reaching 56.1 in December, marking its best performance since December 2021. This optimism reflected in local trading, with the S&P/NZX50 rising by 0.43%. Notable gains came from major stocks, including Infratil, Mainfreight, and Ebos, which saw increases of 0.63%, 0.72%, and 1.07%, respectively.

Market Movements and Noteworthy Stocks

The biggest gainers on the New Zealand main board included small-cap stocks. Rua Bioscience, involved in medicinal cannabis, experienced a surge of 9.38% after securing a new shareholder. Other notable performers were WasteCo, which rose by 7.69%, Minerals Exploration advancing by 7.55%, and Move Logistics increasing by 5.36%.

In contrast, several stocks faced declines, with Blis Technologies dropping by 5.56%. Carbon Fund Units fell by 3.50% after the fund purchased 4,210 CO2 units on Friday. Ryman and Being AI also saw decreases of 2.69% and 2.63%, respectively.

In Sydney, the S&P/ASX 200 gained 0.48%, achieving a new 50-day high. The standout performers included Catalyst Metals, a gold producer that rose by 14.65% due to analysts’ upgrades, and Droneshield, a defence technology firm that increased by 7.84% after being listed as a preferred government contractor.

In other news, President Trump announced plans to sue JPMorgan Chase for alleged “debanking” following the events of January 6, 2021. Reports indicate that Trump has a history of disputes with financial institutions over alleged political biases. A spokesperson for JPMorgan stated, “While we won’t get specific about a client, we don’t close accounts because of political beliefs.”

In the cryptocurrency realm, Bitcoin marked its third consecutive weekly gain for the first time since July. The coin started the week around US$90,000 and surpassed US$95,000 on Tuesday, reaching almost US$98,000 before settling at US$95,000.

As the markets continue to react to both political and economic developments, investors remain cautious amid ongoing uncertainties.