European equity markets traded mostly lower on Thursday, as investor sentiment was dampened by rising geopolitical unease after the United States signalled potential action over Greenland, following recent events in Venezuela.
By 08:05 GMT, Germany’s DAX was up 0.2%, while France’s CAC 40 slipped 0.1% and the UK’s FTSE 100 declined 0.3%.
Greenland developments unsettle investors
Attention across European markets has turned sharply to Greenland after U.S. President Donald Trump suggested that military force could be used to secure control of the semi-autonomous Danish territory.
Concerns intensified after U.S. military action in Venezuela over the weekend led to the capture and transfer of President Nicolas Maduro to the United States, raising fears in Europe that Greenland could face similar pressure.
U.S. Secretary of State Marco Rubio said on Wednesday that he plans to meet Danish officials next week. Addressing reporters, Rubio stated:
“If the president identifies a threat to the national security of the United States, every president retains the option to address it through military means. As a diplomat, which is what I am now, and what we work on, we always prefer to settle it in different ways,”
Both Denmark and the United States are NATO members, and any U.S. military move against Greenland would likely have far-reaching implications for the alliance.
Economic data sends mixed signals
On the macro front, German factory orders rose 5.6% month-on-month in November, pointing to a stronger finish to 2025 for the eurozone’s largest economy. In contrast, UK house prices fell 0.6% in December on a monthly basis, according to Halifax data.
Market focus is now shifting to Friday’s U.S. nonfarm payrolls report, the most closely watched data release of the week. Federal Reserve policymakers have repeatedly highlighted employment as a key factor in rate decisions, with markets currently pricing in two interest rate cuts this year.
Corporate updates: Sodexo and Greggs
In corporate news, Sodexo (EU:SW) reported organic revenue growth of 1.8% in its first quarter, slightly ahead of market expectations. However, adverse currency movements weighed on results, resulting in a 2.2% decline in reported revenue.
Meanwhile, Greggs plc (LSE:GRG) delivered a strong finish to the year, with fourth-quarter total sales rising 7.4%. Like-for-like sales in company-managed shops increased by 2.9% over the period.
Oil prices rebound after inventory data
Crude prices moved higher on Thursday following two consecutive sessions of losses, supported by a larger-than-expected decline in U.S. crude inventories, although developments in Venezuela continued to dominate attention.
Brent crude futures rose 0.3% to $60.11 a barrel, while U.S. West Texas Intermediate crude gained 0.2% to $56.11 a barrel.
According to data released Wednesday by the Energy Information Administration, U.S. crude stockpiles fell by 3.8 million barrels to 419.1 million barrels in the week ended January 2, compared with expectations for a modest increase.
The Wall Street Journal reported on Thursday that the Trump administration is considering measures to exert influence over Venezuela’s state-owned oil company, Petróleos de Venezuela SA (PdVSA), potentially aiming to shape control of the country’s oil sector over the long term.
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