Markets stay pretty calm as Trump makes Davos speech

Global shares rebounded on Wednesday (January 21) following a selloff in prior session after U.S. President Donald Trump toned down his rhetoric in his threats to acquire Greenland while speaking in Davos.

Trump called for immediate negotiations toward a deal to acquire Greenland, but added that he would not use force in his campaign for the northern island. That was a softer tone from the U.S. president, who had said there was "no going back" on his goal to control the island, and had refused to rule out taking it by force. He had also threatened tariffs on Europe, rekindling fears of a global trade war.

On Wall Street, the Dow Jones Industrial Average .DJI rose 1%, the S&P 500 .SPX gained 1% and the Nasdaq Composite .IXIC added 1.1%.

MSCI's All-World index was up 0.61% after losing ground in the last session, while Europe's STOXX 600 index, rose 0.17%. The FTSE index was up 0.31%.

The European Parliament decided to suspend its work on a trade deal between the 27-member bloc and the U.S., a parliament member said, following Trump's repeated requests to take control over Greenland. The European Union will convene an emergency summit in Brussels on Thursday to discuss the matter, with the long-standing U.S.-EU alliance at risk.

-Tilman Blasshofer, Tanya Wood/Reuters