Global Markets Plunge Amid Greenland Tensions and Japan Bond Selloff

(Bloomberg) — Equities extended their selloff as the standoff between the US and Europe over control of Greenland showed no sign of de-escalation, while heavy selling in Japanese debt rippled through global bond markets. A 1.8% slump in S&P 500 futures from Friday’s close left the benchmark poised to wipe out year-to-date gains. European stocks fell 1.4%, adding to losses after the Stoxx 600’s worst day in two months. Nasdaq 100 contracts sank 2.1%. US President Donald Trump’s push to take control of Greenland has injected fresh volatility into markets, reviving fears of a trade confrontation between traditional allies with little sign of compromise. Adding to tensions, Trump overnight threatened steep tariffs on champagne after French President Emmanuel Macron ruled out joining a US-led peace initiative. “The only hope really is that Republican senators and congressmen put a stop to this,” said Laurent Lamagnere, deputy chief executive officer at AlphaValue in Paris. “Investors have taken advantage of these volatility moments to buy the dip but for myself, I am not comfortable. There is no guarantee it will work this time.” Longer-term Treasury yields spiked after a meltdown in Japanese bonds. Investors balked at Prime Minister Sanae Takaichi’s election pitch to cut taxes on food, sending Japan’s 40-year rate to a fresh high. The 30-year US yield jumped nine basis points to 4.93% as bonds everywhere came under pressure. Demand for precious metals surged as investors sought havens, pushing gold above $4,700 an ounce for the first time. Silver also hit a fresh record. A gauge of the dollar fell 0.4% to a two-week low. A series of fresh catalysts could arrive in the coming days, starting with the latest opportunity on Tuesday for the US Supreme Court to rule on the legality of large parts of Trump’s trade policy. Trump is also due to speak in Davos on Wednesday, with investors watching for any sign of an off-ramp in his dispute over Greenland. The Supreme Court decision “could change the situation,” said Nicolas Bickel, group head of investment private banking at Edmond de Rothschild. “It is very difficult to define where the floor is, but we know we have high valuation in nearly every market.” What Bloomberg Strategists Say: “The message to policymakers from the markets is unmistakable: if you plan to spend more without new revenue to match that ambition, be prepared to see yields go up a whole lot. “And given how unforgiving global bond vigilantes appear to be right now, that message won’t be diluted even if the markets are beset by growth concerns prompted by the prospect of new tariffs over US demands for Greenland.” — Ven Ram, macro strategist. For full analysis, click here. Some of the main moves in markets: Stocks The Stoxx Europe 600 fell 1.4% as of 10:08 a.m. London time S&P 500 futures fell 1.8% Nasdaq 100 futures fell 2.2% Futures on the Dow Jones Industrial Average fell 1.7% The MSCI Asia Pacific Index fell 0.6% The MSCI Emerging Markets Index fell 0.5% Currencies The Bloomberg Dollar Spot Index fell 0.3% The euro rose 0.7% to $1.1729 The Japanese yen rose 0.2% to 157.77 per dollar The offshore yuan was little changed at 6.9529 per dollar The British pound rose 0.4% to $1.3475 Cryptocurrencies Bitcoin fell 2.1% to $90,995.29 Ether fell 3.6% to $3,094.99 Bonds The yield on 10-year Treasuries advanced seven basis points to 4.29% Germany’s 10-year yield advanced four basis points to 2.88% Britain’s 10-year yield advanced five basis points to 4.47% Commodities Brent crude rose 0.2% to $64.07 a barrel Spot gold rose 1.3% to $4,732.78 an ounce This story was produced with the assistance of Bloomberg Automation. –With assistance from Neil Campling and Sabrina Nelson Garcinuño. ©2026 Bloomberg L.P.