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Global stock markets see a decline

21 January 2026 09:05 (UTC +04:00)

A widespread selloff spread across equities on Wall Street, Europe and Asia on Tuesday following market volatility stirred by U.S. President Donald Trump's threats to reignite a trade war with Europe over Greenland, APA reports, citing Reuters.

The Dow Jones Industrial Average (.DJI) fell 1.76%, the S&P 500 (.SPX) fell 2.06%, and the Nasdaq Composite (.IXIC) fell ‍2.39%.

The indexes notched their biggest daily loss since October 10 while Wall Street's most-watched gauge of investor anxiety, the Cboe Volatility Index (VIX), jumped to an eight-week high of 20.99.

Europe's STOXX 600 fell 0.7% on the day, having already fallen 1.2% on Monday (STOXX), while the MSCI World Equity Index was down 1.39% (MIWD00000PUS). The FTSE 100 fell 0.67% (.FTSE), opens new tab.

Overnight in Asia, MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), closed ⁠0.55% lower, while Japan's Nikkei (.N225), fell 1.11%. Japanese government bonds (JGBs) plunged, sending yields to record highs, after Prime Minister Sanae Takaichi's calling of a snap election, which shook confidence in ‍the country's fiscal health.

"But we have to take all this with a grain of salt because what we've seen in prior times is that we get a risk-off and a selloff like this ‌, and the ‌Trump administration and the powers that be walk things back and calm things down," Latif added.

U.S. Treasury Secretary Scott Bessent told reporters in Davos on Tuesday that he was confident the U.S. and European countries would find a solution over the Trump administration's aim to take over Greenland, brushing off "hysteria" about a possible trade war.