Global equity markets rallied sharply following reports of a potential Greenland framework agreement, with investors rotating into cyclical assets on improved geopolitical sentiment. Energy and technology stocks led the charge, benefiting from the perception of easing tensions and potential policy clarity.

Meanwhile, traditional safe-haven assets told a different story. Gold prices softened as risk appetite returned to markets, while bond yields declined across the curve, reflecting both the reduced geopolitical premium and market expectations for moderating inflation pressures.

The shift in market dynamics highlights how broader economic narratives shape investor behavior. When uncertainty recedes and growth prospects improve, capital flows typically favor risk assets over defensive positions. For those tracking macro trends and their influence on volatile markets, this repricing offers a useful reminder: geopolitical developments and policy signals remain powerful drivers of asset allocation decisions. The correlation patterns between equities, commodities, and fixed income continue to evolve based on shifting risk premiums and economic expectations.