#TrumpWithdrawsEUTariffThreats The "Greenland Truce" & Market Impact
Immediate "Risk-On" Recovery
The initial reaction has been a classic relief rally. European indices, particularly the DAX 40 (heavy on automotive and industrials) and the FTSE 100, saw significant gains as the threat to their export margins evaporated overnight. In the U.S., the Dow and S&P 500 recovered nearly all the losses triggered by the initial tariff announcement.
The Return of Policy Volatility
While the easing is positive, it reinforces a "volatility premium" in the market. Investors now realize that trade policy is