Despite the impression of an agreement between Washington, NATO, and Denmark on Greenland, stock markets are sluggish. Investors remain cautious in the face of unpredictable US policy.
The Paris stock market is struggling to find a clear direction this Friday. Early this morning, the CAC 40 was hovering around equilibrium (-0.07%). After gaining nearly 1% yesterday, investors are taking a break and preferring to consolidate their positions in light of the tense geopolitical situation.
The rest of Europe also remains cautious : the DAX in Frankfurt is up slightly by 0.16%, the FTSE in London is up 0.27%, and the STOXX 600 is down -0.16%.
Greenland, a symbol of fragile confidence
On Wednesday evening, Donald Trump‘s announcement of a “framework for a future agreement” on Greenland was nevertheless received positively. The US president surprised the markets by renouncing his threats, both commercial and military, against Europe. But the announcement’s impact quickly faded, with traders doubting the solidity of these commitments.
While discussions between the United States and Denmark, under the auspices of NATO, pave the way for a renegotiation of the 1951 defense agreement and a strengthening of security in the Arctic, they are not enough to fully reassure the markets. NATO Secretary General Mark Rutte himself acknowledged that many issues remain to be resolved.
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