European equity markets traded slightly higher on Wednesday as investors weighed geopolitical developments, with attention focused on upcoming discussions over Greenland’s future.
By 08:05 GMT, Germany’s DAX was up 0.1%, France’s CAC 40 added 0.4%, and the UK’s FTSE 100 advanced 0.2%.
Greenland meeting in focus
Geopolitics remained a key driver of sentiment, with markets watching a scheduled meeting between U.S. Secretary of State Marco Rubio and officials from Greenland and Denmark. The talks come amid repeated comments by U.S. President Donald Trump about “acquiring” the semi-autonomous Danish territory.
Trump has repeatedly argued that the United States must own Greenland to prevent Russia or China from gaining control of the strategically important, mineral-rich Arctic region. Greenland and Denmark have both stated that the island is not for sale, although Trump has not ruled out the use of force.
Elsewhere, unrest in Iran continued to weigh on global sentiment. The U.S.-based HRANA human rights group said on Wednesday that the death toll from protests has climbed to more than 2,500 people, as authorities move to suppress demonstrations. Trump on Tuesday urged Iranians to continue protesting, saying help is on the way.
U.S. producer inflation awaited
With little in the way of major European economic data scheduled, investor focus was set to shift back to the United States. Data released on Tuesday showed U.S. consumer inflation remained relatively contained, keeping the prospect of rate cuts in 2026 alive.
Attention now turns to upcoming U.S. producer inflation and retail sales figures, which could provide further insight into the future direction of monetary policy.
BP flags hefty impairment
In corporate news, shares in BP (LSE:BP.) were in focus after the energy group said it expects to book $4 billion to $5 billion in impairments in the fourth quarter, largely tied to its energy transition businesses. The company also pointed to weak oil trading.
BP has been seeking to refocus on its core oil and gas operations, stepping back from earlier ambitions to transform itself into a green energy-focused company.
Elsewhere, Pearson (LSE:PSON) reported that sales growth accelerated to 8% in the final quarter of the year, with the education group saying it expects operating profit in 2025 to increase by around 6%.
On Wall Street, investors were preparing for further bank earnings later in the session, with results due from Citigroup (NYSE:C), Bank of America (NYSE:BAC) and Wells Fargo (NYSE:WFC). The updates follow JPMorgan Chase (NYSE:JPM), which reported quarterly profit above market expectations on Tuesday.
Oil prices slip as inventories rise
Oil prices edged lower on Wednesday, giving back part of their recent gains after Venezuela resumed exports and U.S. crude inventories increased, although developments in Iran remained a key risk factor.
Brent futures fell 0.8% to $64.96 a barrel, while U.S. West Texas Intermediate crude declined 0.8% to $60.69 a barrel.
Both benchmarks had jumped more than 2.5% on Tuesday, with Brent reaching an 11-week high and WTI touching a 10-week peak, extending gains for a fourth consecutive session.
U.S. crude stockpiles rose by 5.23 million barrels in the week ended January 9, according to data from the American Petroleum Institute released on Tuesday. Official inventory figures from the U.S. Energy Information Administration are due later on Wednesday.
Adding to supply dynamics, OPEC member Venezuela has resumed crude exports under a deal between Caracas and Washington following the U.S. capture of Venezuelan President Nicolas Maduro. However, escalating protests in Iran have heightened concerns about potential supply disruptions from the world’s fourth-largest OPEC producer.
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