Lizzie Burden

And this is Bloomberg.

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I'm Lizzie Burden.

US President Donald Trump says he won't impose extra tariffs on goods from European countries opposed to his efforts to acquire Greenland.

In a social media post, Trump cited the framework of a future deal reached with NATO as the reason for the change.

It followed a meeting with NATO Secretary General Mark Rutter at the World Economic Forum in Davos.

Speaking to reporters in the conference centre shortly afterwards, the US President offered further insight into the deal.

How so?

Can you give us some details, please?

Does it still include the United States having ownership of Greenland like you said you wanted?

Despite Trump's optimism, the US president did not give any details on what the agreement entails.

The New York Times reports that discussions included a compromise in which Denmark would give the US sovereignty over small pockets of land on Greenland for the construction of military bases.

Global stocks have been rallying after President Trump abandoned his tariff threats against the eight European nations.

European stocks rebounding at the market open as carmakers and auto parts stocks led the gains, with Volkswagen jumping by more than 5% in early trading.

Bloomberg's international economics and policy correspondent Mike McKee says the pivot has driven markets.

Mike McKee speaking there as the president's policy shift appeared to vindicate investors who adhere to the taco trade, that is, buying any dip caused by the US tariff threats because, they argue, Trump always chickens out when there is a major market sell-off.

Those are your top stories this morning on the markets.

The stock 600 is up 1.2% on Wall Street.

S&P E-mini futures are up six tenths of a percent and the 10-year US Treasury yield is steady at 4.24%.

And I'm Lizzie Burden.