European Stocks Close Mixed as U.S.-Denmark Tensions Over Greenland Rattle Investors
Defense stocks gain amid geopolitical jitters, while Germany's DAX index climbs to a new all-time high.
European stock markets ended the day with a mixed performance as traders focused on escalating geopolitical tensions surrounding Greenland, a dynamic that sent defense sector shares higher.
Investors across Europe are on high alert following threats from U.S. President Donald Trump regarding the potential use of military force to acquire Greenland, a semi-autonomous territory of Denmark. Concerns have been amplified by U.S. military action in Venezuela over the weekend, which resulted in the capture and transfer of President Nicolás Maduro to the United States, sparking fears that Greenland could be the next focus.
U.S. Secretary of State Marco Rubio said Wednesday that he will meet with Danish officials next week.
“If the president identifies a threat to the national security of the United States, every president retains the option to address it with military means,” Rubio told reporters. “As a diplomat, something which I am now, and what we are working on, we always prefer to settle it in different ways.”
Both the United States and Denmark are members of NATO, and a military takeover of Greenland by the U.S. would likely signal an end to the alliance.
In corporate news, French food services company Sodexo reported a 1.8% organic increase in first-quarter revenue, slightly ahead of market forecasts. However, adverse foreign exchange impacts pushed reported revenue down by 2.2%.
British bakery chain Greggs (LON:GRG) announced a strong finish to the year. Total sales for the fourth quarter rose by 7.4%, while like-for-like sales in company-managed shops increased by 2.9%.
On the macroeconomic front, the UK’s House Price Index for December fell 0.6%, contrary to economists’ expectations of a 0.1% rise. On an annual basis, prices grew 0.3%, below the forecasted 1.1%. In Germany, November factory orders surged 5.6%, defying analyst predictions of a 0.9% decline. The Eurozone unemployment rate for November edged down to 6.3%, better than the 6.4% forecast.
In government debt markets, Spain issued a five-year bond with a 2.512% coupon, up from 2.471% in the previous auction, and a seven-year bond yielding 2.938%, compared to 2.885% prior. France also issued a ten-year bond with a coupon of 3.53%, up from 3.38%.
The pan-European Stoxx 600 index closed down 0.20% at 603.68 points.
In Frankfurt, the DAX 40 index finished 0.14% higher at 25,133.42, after setting a new all-time high of 25,222.92 during the session. The technical signal remains a strong buy, with support at 24,293 points.
Top Risers
Top Fallers
London’s FTSE 100 index closed with a marginal loss of 0.08% at 10,040.15. Its signal remains a strong buy, with support located at 9,705 points.
Top Risers
Top Fallers
In Paris, the CAC 40 index edged up 0.04% to close at 8,237.27. The technical signal is also a strong buy, with support levels at 8,204 and 7,941 points.
Top Risers
Top Fallers
