Trade War Escalates: Danish Fund Dumps Treasuries on Greenland Threats

Geopolitical friction is shifting to asset allocation as the Danish pension fund AkademikerPension moves to liquidate positions in US Treasuries. citing risks linked to President Donald Trump's renewed push to purchase Greenland.

Credit Risk and Capital Weaponization

Chief Investment Officer Anders Schelde has labeled the US fiscal situation as unsustainable. While the fund's $100 million holding is small relative to the $25 trillion market, Deutsche Bank warns this signals a broader trend of European managers weaponizing capital against perceived coercion.

EU Counter-Measures

The European Union is preparing a response to threats of 10-25% tariffs. Commission President Ursula von der Leyen vowed a reciprocal response at Davos, potentially activating the Anti-Coercion Instrument to carry out targeted strikes against major US entities like Boeing.

Technicals & Market Data

• Key Pair: EUR/USD has risen 0.7% pricing in a unified European fiscal stance.
• Commodities: Gold (XAU/USD) is benefiting from the debasement trade seeking alternatives to the US Dollar.
• Fund Exposure: AkademikerPension divesting $100 million by month-end.