Younger folks with placards studying “Greenland just isn’t on the market!” participate in an illustration that gathered nearly a 3rd of town inhabitants to protest in opposition to the US President’s plans to take Greenland, on January 17, 2026 in Nuuk, Greenland, close to the US Consulate to Greenland.
Alessandro Rampazzo | Afp | Getty Photos
LONDON — European shares had been decrease on Monday as merchants reacted to U.S. President Donald Trump’s menace to hike tariffs on European international locations in the event that they oppose his bid to purchase Greenland.
The pan-European Stoxx 600 misplaced 1.4% by 11:10 a.m. in London (6:10 a.m. ET), with all however one sector — telecoms, up 0.5% — in destructive territory.
The market droop comes after Trump introduced on Saturday that eight European allies would face growing tariffs, beginning at 10% on Feb. 1 and rising to 25% on June 1, if a deal just isn’t reached that permits Washington to “purchase” Greenland, a semi-autonomous territory that is a part of Denmark.
Eight NATO members’ items despatched to the U.S. will face escalating tariffs “till such time as a Deal is reached for the Full and Complete buy of Greenland,” Trump said on his social media platform Reality Social on Saturday.
The proposed tariffs would goal Denmark, Norway, Sweden, France, Germany, the U.Ok., the Netherlands, and Finland, Trump stated. European leaders stated the tariffs had been “unacceptable” and vowed to face behind Denmark.
European carmakers and the posh items sector had been hit laborious in morning commerce as buyers reacted to the tariff proposals. The Stoxx Europe 600 Cars & Components Index was 2.8% decrease. Volkswagen slumped about 2.6%, whereas Porsche fell 3.9% and BMW misplaced nearly 4.2%.
Among the many continent’s luxurious names, LVMH dropped greater than 4%, Kering slipped 2.9%, Hermes tumbled 3.2% and Moncler was down by greater than 2%. Total, the Stoxx Europe Luxurious 10 was final seen down 3%.
In distinction, Europe’s protection shares rallied. Rheinmetall, the continent’s largest protection firm, was up 2.8%, as German counterpart Renk superior nearly 2.5%, with French tech and aerospace large Thales including 2.3%.
Elsewhere, ASM Worldwide fell 0.7%, reversing earlier beneficial properties, after the Dutch laptop chipmaker reported stronger-than-anticipated preliminary bookings of round 800 million euros ($930 million) for the fourth quarter, boosted by a rebound in Chinese language orders and above forecasts of 669 million euros. Preliminary revenues got here in at 698 million euros, outweighing LSEG ballot estimates.
Shares of ASML, in the meantime, dropped 3.3%. The slide comes after the Dutch semiconductor gear maker hit a report excessive final week.
U.S. gold futures hit a 52-week excessive on Monday, advancing 1.6% to succeed in $4,670.40 an oz, whereas spot gold costs had been final seen at $4,664.66, a 1.5% rise.
Markets may also be retaining an in depth eye on the World Financial Discussion board kicking off in Davos, Switzerland, this week. Trump is because of handle the Discussion board on Wednesday.
There aren’t any main earnings this week, although on the info entrance, euro zone inflation knowledge is due.
