Derren Nathan, head of equity research at Hargreaves Lansdown, said: “UK and European markets are tracking Asian markets downwards this morning after an extraordinary weekend of economic sabre-rattling over Greenland.
“Donald Trump’s given eight countries, including three of the world’s largest economies, until February 1 to clear the path for the US acquisition of Greenland, or face a 10 per cent tariff, which could rise to 25 per cent in time.
“The European Union has hit back with a proposed €93 billion tariff package and has dusted off its never-before-used ACI (anti-coercion instrument), which would further limit US companies’ access to major contracts across the single market.
“The UK is yet to make a formal response, but the Prime Minister will address the nation today at 2.30pm after reiterating his opposition to Washington’s desire to take control of Greenland in a call with Donald Trump on Sunday.
“The market reaction to this escalation has been relatively muted compared to the post-liberation day sell-off seen last April.
“Given the President’s history of dramatic threats and last-minute stand-downs, investors may be pricing in a generous degree of bluff in this high-stakes poker game.”
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