Trump's battle for Greenland: Why the stock market hates it all

Market Reaction - The stock market is experiencing significant losses, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all suffering heavy declines, prompting investors to seek safe-haven assets like gold [2] Tariff Announcement - President Trump announced a 10% tariff on eight European countries, which will escalate to 25% in June unless the U.S. gains control of Greenland, affecting key trading partners such as the UK and Germany [3] Trade Tensions - The recent escalation in transatlantic tensions and tariff uncertainty is expected to negatively impact the near-term investment outlook for European equities, leading to a downgrade of continental Europe to Neutral for the first time in over a year [6] Sector Impact - The uncertainty surrounding tariffs has led to a downgrade of "internationally exposed" sectors, particularly in autos and chemicals, due to the potential negative effects on earnings per share (EPS) growth in 2026 [6] Analyst Commentary - Analysts, including those from Citi, suggest that the latest tariff developments will have lasting implications and should be considered in the context of global stock markets [5]