Global markets sold off on Tuesday, with European stocks extending losses and US equity markets opening lower. Denmark’s exposure to potential tariff escalation tied to Greenland was a focal point for investors. Safe-haven assets like gold and silver reached new record highs, reflecting rising concerns over a potential trade war between the US and Europe.

Stocks fell as trade tensions between the US and Europe escalated over Greenland. European stocks extended losses from Monday, and US markets traded lower. The US dollar weakened, while safe-haven precious metals hit new highs. President Trump threatened tariffs on European imports and further escalated rhetoric.

Denmark’s stock market particularly exposed to tariff escalation, with potential substitution effects impacting European growth. Danish equities vulnerable to a 10% tariff on exports to the US, with limited upside and asymmetric downside risk. Foreign investors may stay sidelined due to uncertainty, focusing on Danish stocks as a key area to monitor.

Commodity markets reflected a risk-off mood as concerns over a US-EU trade war drove demand for safe-haven assets. The weakening US dollar supported gold and silver near record highs. Gold traded around USD 4,712 per ounce, silver at USD 94 per ounce. Uncertainty and pressure on the greenback may lead to further gains in gold prices.

Read more at Morningstar: Global Stocks Fall as Trump Escalates Tariff Threats Against Europe