Stocks push higher as Trump walks back Greenland threats

World stocks nudged higher, the dollar was steady and gold softened on Thursday after US President Donald Trump ruled out seizing Greenland by force and dropped tariff threats against eight European countries.

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Relief at Trump’s change of tune pushed Europe's STOXX600 index up over I2. Wall Street was also pointing higher again after its initial rally on Wednesday had been its best day in two months.

“I don't have to use force, I don’t want to use force, I won't "use force,” Trump had said at Davos about securing Greenland, adding that he would not be imposing IO$ import tariffs he had threatened on goods from eight European allies.

On Thursday he followed that up, saying he had secured a deal with the NATO military alliance that amounted to complete and permanent US access to Greenland. “Essentially it’s total access,” Trump told the Fox Business Network in an interview.

The dollar had bounced following the walkback but sagged again in Europe. The euro climbed back above $1.17, Denmark's crown was steady against both the dollar and the euro while gold was off its recent record high at $4,829 an ounce.

“The lesson from last year was that actually markets are able to look through this (geopolitical headline-driven volatility),” State Street's Michael Metcalfe said, adding that US interest rate cuts and economic fundamentals should start to dominate focus again.