The relief in markets is palpable today as Donald Trump appears to rule out using force to take Greenland, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.
Stocks recover as Trump walks back military threat
Traders have had to spend their afternoon listening to Donald Trump ramble on about his usual variety of topics, but the key nugget was his comment on ruling out military action to seize Greenland. This has delivered the magic moment everyone was waiting for, and stocks duly rallied while the VIX slumped as fears of a total rupture of the Western alliance receded. While the EU parliament has suspended work on the US trade deal, the diminishing chance of a US-EU trade war has allowed a more positive atmosphere to prevail.
Netflix rallies off one-year low
The rebound in risk appetite has helped Netflix claw back losses after its results last night. Even the most die-hard fundamental investor can’t help but note the price testing the $80 from last April. With much of the bad news in the price and the shares trading at a much less demanding valuation compared to six months ago, will the bargain hunters finally emerge?
Source: https://www.fxstreet.com/news/stocks-recover-following-trump-speech-202601211656