Investors flee U.S. assets as Greenland, Japan bond fears hit markets

Global financial markets were rattled this week as investors sold off U.S. assets, government bonds and stocks amid a combination of geopolitical tension and rising debt-market concerns tied to U.S. President Donald Trump’s aggressive Greenland stance and a sharp selloff in Japanese government bonds (JGBs).

Trump’s continued push to assert U.S. control or influence over Greenland — including tariff threats against European nations if they resist — has unsettled global investors worried about transatlantic relations, trade disruption and broader geopolitical risks. This has contributed to a “Sell America” trade sentiment, with the U.S. dollar weakening and losing appeal as investors seek safer havens.

At the same time, a historic selloff in Japanese government debt sent yields sharply higher, compounding global bond market stress and amplifying anxiety among fixed-income investors. The combination of rising yields and geopolitical fears spilled into equity markets around the world, with major indices showing significant losses.

Amid the turmoil, safe-haven assets like gold surged to record highs, reflecting heightened risk aversion as traders flee riskier holdings. At the same time, European pension funds and other institutional investors have begun reassessing exposure to U.S. Treasuries, with some announcing strategic divestments to mitigate fiscal and political uncertainty.

Market analysts say that while U.S. economic fundamentals remain relatively robust, the unusual confluence of territorial rhetoric, tariff threats and shifting sovereign debt dynamics has introduced a level of volatility that transcends typical trading noise. Investors are now closely watching geopolitical developments and central bank responses for signals on how long the current bout of uncertainty might last