Source: Reuters (via feed)
Global shares rebounded on Wednesday after a sharp selloff.
Investors reacted to comments from U.S. President Donald Trump.
Trump said a framework for a future deal over Greenland was reached.
He also said tariffs set for Feb. 1 would not go ahead.
Earlier, he ruled out taking Greenland by force.
As a result, markets steadied after a volatile session.
Wall Street rose following the remarks.
The Dow Jones Industrial Average climbed 1.21%.
The S&P 500 gained 1.16%.
The Nasdaq Composite added 1.18%.
Meanwhile, the S&P 500 logged its biggest daily gain since Nov. 24.
Global benchmarks also improved.
MSCI’s All-World index rose 0.87%.
However, Europe’s STOXX 600 ended down 0.02%.
Britain’s FTSE 100 added 0.11%.
Risk gauges eased as well.
The VIX fell more than 15% to 17.
It had jumped to its highest level since November a day earlier.
Therefore, demand for protection eased during the rebound.
Bonds and rates
Bond markets stayed in focus after a steep rout.
Worries had centered on exposure to U.S. assets.
In addition, Japanese yields had surged on Tuesday.
Long-dated Japanese bonds saw their most aggressive selloff in nearly 25 years.
Investors feared higher government spending under Prime Minister Sanae Takaichi.
By Wednesday, Japanese bond prices rallied as buyers returned.
As a result, much of the prior move reversed.
A similar pattern appeared in U.S. Treasuries.
The 30-year yield fell 5.1 basis points to 4.8693%.
The 10-year yield eased 4.4 basis points to 4.251%.
Earlier, the U.S. 30-year yield had neared 5%.
Currencies and commodities
The dollar index rebounded and was up 0.25%.
Meanwhile, the euro fell 0.34% to $1.1686.
The dollar rose 0.69% to 0.7954 Swiss francs.
The yen weakened 0.16% to 158.37 per dollar.
This came ahead of the Bank of Japan policy meeting on Friday.
No rate hike is expected this time.
However, policymakers could hint at an April move.
Oil prices edged higher as well.
Brent settled up 0.49% at $65.24 a barrel.
Meanwhile, spot gold rose 1.11% to $4,815.93 an ounce.
Source: Reuters
