Toronto, Ontario -- A period of of geopolitical uncertainty -- one set off by the abduction of Venezuelan president Nicholas Maduro by the U.S. Government and repeated statements about a possible invasion of Greenland by Donald Trump -- has begun.
On Dec. 22, Trump said the United States needed Greenland “for national security,” drawing swift rejection from Denmark and Greenlandic leaders. The European Union pushed back, stressing Greenland’s sovereignty and its role in Europe’s long-term supply of critical minerals. Canada backed Denmark and Greenland, while calling for stability and co-operation in the Arctic.
In early January, attention shifted to South America after the arrest of Venezuelan President Nicolás Maduro following years of U.S. sanctions and pressure. Trump framed the arrest as a turning point for security and energy markets, prompting speculation around future oil production. The European Union and Canada urged caution, warning that sanctions and energy policy would not change overnight.
This week's Tuesday Ticker takes how companies with close ties to the automotive sector have been affected by these destabilizing events.
Frozen Focus
Investors appeared largely unconcerned about the risk that Trump’s rhetoric or potential disruption could pose to a Canadian miner operating in Greenland. Greenland Resources Inc.
The Toronto-based mining company is developing the Malmbjerg molybdenum project in east-central Greenland. Shortly after the U.S. President reiterated his plans for the Danish island, the company saw its shares rise in value. The stock climbed from about $1.60 to roughly $1.75 by early January, a gain of around nine %.
Interest in the company may be growing precisely because the Trump administration has highlighted Greenland’s importance to Western supply chains. Molybdenum is seen as a strategic resource in the automotive sector because it is used in high-strength steel for electric vehicle frames, battery enclosures and other structural components.
Crude Rebound
In the wake of the abduction of Maduro, investors responded favourably to oil producers with direct exposure to Venezuela -- a sign many view the usurpation of power to be more indicative of a potential opening rather than a threat.
Chevron Corporation, an integrated oil and gas company based in California with exposure to Venezuelan petroleum production, saw its shares jump after Maduro’s arrest. In the days that followed, Chevron stock rose from roughly US$155 to about US$166, an increase of around seven %.
Refining Ripples
Petroleum refiner stocks also benefited from the removal of the controversial Maduro, as investors focused on upsides of opportunity rather than the downsides of disruption.
Investors appear to believe that refiners capable of handling heavy crude could benefit if Venezuelan exports increased, despite ongoing sanctions and infrastructure limits.
Phillips 66, a Houston-based refining and fuels company working in the troubled South American nation, posted gains in early January. Shares climbed from about US$128 to roughly US$140, a rise of about nine %.
Arctic Arms
European defence stocks rose as investors viewed Trump’s comments as increasing the likelihood of higher military spending rather than causing near-term instability.
Rheinmetall, a German defence and automotive systems maker, saw its shares climb from about €1,550 in mid-December to near €1,850 in early January, a gain of roughly 19%.
Expectations for increased European defence spending helped drive the move. European defence spending rose sharply in late 2024 and early 2025 as governments responded to growing security concerns tied to Russia’s war in Ukraine as well the tensions around Greenland.
Nordic Shield
The Stockholm-based defence and aerospace firm Saab AB emerged as one of the clearest beneficiaries of the shift in sentiment on defence.
The company recorded the sharpest move among European peers. Saab's shares rose from around SEK 513 to about SEK 695 in the week's following Trump's comments about Greenland on December 22 -- an increase of about 28%.
Saab designs and manufactures military aircraft, including the Gripen fighter jet, along with radar and surveillance systems, command-and-control software, electronic warfare equipment and naval systems.
