"For weeks on Wall Street, markets were unusually subdued as President Donald Trump threatened the post-war order by asserting US dominance of the Western hemisphere. But with his drive to take over Greenland throwing the European and American alliance in disarray and Japanese bonds plunging on concerns over the country's finances the calm abruptly snapped. As stock markets opened on Tuesday, the Sell America trade came back in full force as Treasuries and the dollar slid."
"The moves show that investors' previous willingness to shrug off Trump's actions including the White House's capture of Venezuela's leader, its threats to nearby countries, and renewed attacks on the Federal Reserve is beginning to erode. But Trump's demand for US control over Greenland is stoking investor anxieties about potential worst-case scenarios, including a rupture in the NATO alliance, a full-blown trade war, or European steps to foment market turbulence as a way to force the Trump administration to back down."
Markets were unusually subdued for weeks even as President Donald Trump asserted US dominance of the Western hemisphere and threatened the post‑war order. His attempt to pursue Greenland and a plunge in Japanese bonds over fiscal concerns abruptly snapped that calm. As stocks opened on Tuesday Treasuries and the dollar slid, the S&P 500 fell as much as 1.5% and the VIX rose to its highest since November. Gold jumped to a record above $4,700 an ounce. Investors' tolerance for repeated confrontations is eroding as fears grow of a NATO rupture, a full trade war, or European actions designed to force a reversal, with potential long‑lasting implications for the dollar.
Read at www.mercurynews.com
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