Global equity markets rallied today, Thursday, 22 January 2026, as investors breathed a sigh of relief following President Trump’s decision to “walk back” recent threats regarding the acquisition of Greenland. The shift in rhetoric has calmed fears of a diplomatic and economic standoff with Denmark and the European Union.
The S&P 500 and NASDAQ both saw gains of over 1.2% in early trading, while European indices like the DAX and CAC 40 responded with even stronger jumps.
The tension began earlier this week when the administration suggested “extreme measures,” including potential tariffs or a diplomatic freeze, if Denmark did not engage in talks about the “strategic transfer” of the island.
The New Tone: In a social media post and subsequent White House briefing, the President shifted the focus from “acquisition” to “unprecedented strategic cooperation.”
The “Joint Development” Pivot: The White House now says it is seeking a “long-term lease for expanded military and mineral resource development” rather than a outright purchase.
Denmark’s Reaction: Prime Minister Mette Frederiksen, who had previously called the idea “absurd,” welcomed the “return to sanity,” noting that Greenland is not for sale but remains open to “deepened security ties.”
Analysts suggest this walk-back was a tactical move to maintain the momentum of the “Board of Peace” (which we reported on earlier). By cooling tensions with a NATO ally like Denmark, the administration ensures that European partners remain at the table while Turkey and Saudi Arabia join the new diplomatic framework.
