New Delhi, Jan 24 || Investors are likely to remain on edge over the proposed US framework on Greenland, and near-term volatility related to this issue can continue, a report has said.
The report from Bank of Baroda said that market participants are awaiting more details that could determine whether negotiations succeed or unravel.
"Going ahead, investors are likely to await more details of the deal, as there are a few sticking points which can derail the negotiations. Hence, some volatility can be expected," the report said.
Several analysts expect the arrangement to resemble an update of the existing security agreement between the US and Denmark, which was signed in 1951, the report noted.
Further negotiations will follow in due course which will cover areas such as US military presence in Greenland, as well as use of its mineral resources and sovereignty, said Aditi Gupta, Economist, Bank of Baroda.
US President Donald Trump has framed Washington’s interest in Greenland as driven by national security concerns, but the island’s largely unexplored mineral wealth including oil, gas and rare earth elements is of interest to US, the report said.