Global stocks steady after Greenland tensions ease

Global stocks were steady after a softer public stance by U.S. President Donald Trump eased tensions over Greenland, while the yen moved sharply amid signs Japanese authorities may be prepared to support the currency.

Global stocks were steady on Friday after tensions over Greenland eased following a softer public stance by U.S. President Donald Trump. The yen traded choppily as traders inferred possible market checks or readiness by Japanese authorities to support the currency. The Bank of Japan signalled it remained prepared to continue raising borrowing costs amid a politically charged atmosphere and a snap election next month. Markets also tracked U.S. rate expectations and movements in gold and oil. Market developments: - Global stocks were reported up about 0.1 percent, with European markets broadly flat and Wall Street futures pointing to small declines. - The yen swung from a loss to a sudden gain versus the dollar, prompting traders to infer that Japanese authorities may have run rate checks or signalled readiness to intervene. - The Bank of Japan signalled a hawkish tone and two-year Japanese government bond yields rose to 1.25 percent, a level not seen since August 1996; a snap election is scheduled for next month. - Fed funds futures priced a high probability that the U.S. Federal Reserve will keep rates on hold at its meeting beginning January 28; U.S. 10-year Treasury yields and commodity prices, including record-setting spot gold and higher Brent crude, were also noted. Summary: Markets regained some ground as diplomatic tensions eased and central bank signals influenced currency and bond moves. Key near-term dates include the Bank of Japan's snap election next month and the Federal Reserve meeting on January 28. Undetermined at this time.