Stocks Sink on Greenland as Japan Stirs Bond Rout: Markets Wrap
(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.
European stocks fell 1.2%, adding to losses after the Stoxx 600’s worst day in two months. A 1.7% slide in S&P 500 futures from Friday’s close left the benchmark poised to wipe out year-to-date gains. Asian shares fell 0.5%.
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 selloff in stocks accelerated after a meltdown in Japanese long-term bonds. Yields jumped as investors balked at Prime Minister Sanae Takaichi’s election pitch to cut taxes on food, with the 30-year Treasury rate spiking nine basis points to 4.93% as debt markets everywhere came under pressure.
“We are in an escalation period at the moment, so the market had to react to that situation,” said Nicolas Bickel, group head of investment private banking at Edmond de Rothschild. “We will have a couple of days of uncertainty.”
Demand for precious metals surged as investors sought havens, sending gold above $4,700 an ounce for the first time. Silver also hit a fresh record. A gauge of the dollar fell to a two-week low.
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 1.2% as of 9:11 a.m. London time S&P 500 futures fell 1.6% Nasdaq 100 futures fell 1.9% Futures on the Dow Jones Industrial Average fell 1.5% The MSCI Asia Pacific Index fell 0.5% The MSCI Emerging Markets Index fell 0.4% Currencies
The Bloomberg Dollar Spot Index fell 0.3% The euro rose 0.7% to $1.1725 The Japanese yen rose 0.2% to 157.72 per dollar The offshore yuan was little changed at 6.9520 per dollar The British pound rose 0.5% to $1.3486 Cryptocurrencies
Bitcoin fell 2.1% to $90,962.45 Ether fell 3.6% to $3,094.68 Bonds
The yield on 10-year Treasuries advanced six basis points to 4.28% 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 fell 0.4% to $63.69 a barrel Spot gold rose 1.2% to $4,727.88 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Neil Campling.
©2026 Bloomberg L.P.
