World markets jolted, dollar dips as Trump vows tariffs on Europe over Greenland

Group 1: Market Reactions - Global markets are experiencing volatility due to President Trump's tariff threats on eight European nations, causing the euro to drop to a seven-week low [1][2] - The euro fell 0.2% to around $1.1572, marking its lowest level since November, while the British pound also dipped and the Japanese yen strengthened against the dollar [3] - European stocks are near record highs, with Germany's DAX and London's FTSE index rising over 3% this month, outperforming the S&P 500, which is up 1.3% [6] Group 2: Economic Impact - Capital Economics estimates that a 10% tariff could reduce GDP in the UK and Germany by approximately 0.1%, while a 25% tariff could decrease output by 0.2–0.3% [6] - European defense shares are likely to benefit from ongoing geopolitical tensions, with defense stocks rising nearly 15% this month due to concerns related to U.S. actions in Venezuela and Greenland [7] Group 3: Investor Sentiment - Investor sentiment has shown resilience, with markets previously looking past U.S. trade threats in the latter half of the year, although the current tariff situation has dampened hopes for stability [4] - Bitcoin, viewed as a liquid proxy for risk, remained steady at $95,330, indicating a cautious investor approach amid geopolitical uncertainties [5]