New Delhi, January 24 (IANS). According to a report, investors may remain worried due to America’s proposed plan regarding Greenland. Market volatility is likely to continue in the near future due to factors related to this issue.
Bank of Baroda’s report states that investors are currently waiting for more information related to this proposal. This information will determine whether negotiations between America and other countries will be successful or will be hindered.
The report said that going forward, investors will wait for more information about this deal, because there are some important issues in it, due to which the talks can be derailed. For this reason there may remain instability in the market.
Many experts believe that this arrangement could be a new form of the security agreement signed between America and Denmark in 1951.
According to Aditi Gupta, economist at Bank of Baroda, in the upcoming talks, issues like the presence of the US military in Greenland, the use of mineral resources there and the sovereignty of Greenland will be discussed.
The report said that US President Donald Trump has described America’s interest in Greenland as motivated by national security concerns. However, the resources like oil, gas and rare mineral elements present in Greenland are also a reason for attraction for America.
According to the report, the announcement of a framework agreement between the US and NATO has definitely brought some relief to investors, but the complete details of this agreement are not yet clear.
As the rhetoric regarding Greenland intensified, geopolitical tensions increased and markets were jittery. The situation worsened when the US President talked about annexing Greenland and threatened to take economic action against European countries that protested.
In response, several European countries, including France, Germany and Sweden, increased military deployments in Greenland, further escalating tensions.
Donald Trump had announced that from February 1, 2026, an additional 10 percent tax will be imposed on goods coming from Britain, Denmark, Norway, Sweden, France, Germany, Netherlands and Finland. This tax was going to increase to 25 percent from June 1, 2026.
However, later during the World Economic Forum (WEF) meeting held in Davos, Trump indicated to step back from threatening to impose tariffs on European countries.
–IANS
DBP/AS
