The EU's decision to freeze approval of the US trade agreement in response to Greenland tensions didn't trigger the market volatility you might expect. Traders seem relatively unfazed by the escalating geopolitical friction, suggesting either confidence in diplomatic resolution or simply market fatigue with headline-driven scares.

Here's what caught attention though: when trade policies shift, capital flows adapt. Currency markets ripple, risk sentiment tilts, and crypto tends to follow broader macro trends. The real question isn't whether this deal gets unstuck—it's how long these US-EU trade tensions persist and whether they spill into other sectors.

For portfolio managers balancing exposure, this is background noise until proven otherwise. But keep tabs on how policymakers respond. One escalation could flip the script on asset correlations real quick.