Morning Bid: Transatlantic tantrum

Core Viewpoint - U.S. President Donald Trump's tariff threats over Greenland are causing unease in global markets, leading to increased volatility and a rise in safe-haven assets like gold and silver [1][2]. Group 1: Market Reactions - European equities fell over 1% on Tuesday morning, while Nasdaq and S&P 500 futures also slipped before the market opened [5]. - The dollar faced pressure despite the yield on the 10-year U.S. Treasury note rising to 4.265%, a four-month high [5]. - Gold prices surpassed $4,700 per ounce for the first time, indicating a shift towards safe-haven investments [5]. Group 2: Tariff Threats and Trade Dynamics - Trump's renewed tariff threats against European allies have reignited discussions about the 'Sell America' trade, reminiscent of the aftermath of his previous tariffs [2]. - The White House has threatened to impose 200% tariffs on French wines and champagnes to persuade French President Emmanuel Macron to join Trump's Board of Peace initiative [3]. - Canadian Prime Minister Mark Carney is attempting to establish a new global trading order by collaborating more closely with China and pursuing smaller trade agreements [3]. Group 3: Broader Economic Implications - Trump's support for the oil industry may lead to complications as he simultaneously pushes for lower energy prices [4]. - EU leaders are under pressure to implement necessary economic reforms in line with recommendations from Mario Draghi, despite the rising tensions in global trade [4].