European equities climbed sharply on Thursday after U.S. President Donald Trump said he would not move forward with tariffs on European countries linked to Greenland, adding that a framework agreement had been reached regarding the Danish territory.
By 08:05 GMT, Germany’s DAX was up 1.2%, France’s CAC 40 had gained 1.3%, and the UK’s FTSE 100 was 0.7% higher.
Trump backs away from tariff plans
Speaking on Wednesday at the World Economic Forum in Davos, Trump ruled out the use of military force—after weeks of leaving the option open—and said in a social media post that he would no longer impose tariffs that had been due to take effect on February 1.
The U.S. president said he and NATO Secretary General Mark Rutte had “formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region” following talks at the Swiss resort.
Earlier in the week, European markets had sold off sharply after Trump threatened escalating tariffs on several European countries unless the United States was allowed to purchase Greenland, an autonomous territory of Denmark.
Despite the market relief, uncertainty remains around the future strength of the traditional alliance between the European Union and the U.S. That tension was underlined on Wednesday when European Central Bank President Christine Lagarde walked out of a dinner during a speech by U.S. Commerce Secretary Howard Lutnick.
Lagarde said earlier in the day that the European economy needs a “deep review” to confront “the dawn of a new international order.”
U.S. inflation data in focus
There is little in the way of major European economic data scheduled for Thursday, but investors are closely watching a series of key U.S. releases.
Weekly initial jobless claims will offer insight into labour market conditions, while the latest reading of third-quarter gross domestic product is expected to confirm underlying economic resilience. However, the most closely followed figure may be November core PCE inflation—the Federal Reserve’s preferred measure of price pressures—as markets look for clues on the likely trajectory of U.S. interest rates this year.
Corporate updates across Europe
In company news, Associated British Foods (LSE:ABF) said underlying sales at its Primark clothing chain declined over the Christmas trading period, in line with estimates released alongside its profit warning earlier this month.
Spain’s Bankinter (BIT:1BKT) reported a 14.4% increase in net profit to a record €1.09 billion in 2025, supported by strong growth in off-balance-sheet funds and fee income, which offset weaker net interest income as rates fell.
Swiss healthcare group Galenica (BIT:1GALE) said 2025 sales rose 5.5% to an all-time high, with all divisions contributing, and reaffirmed EBIT growth guidance of 10–12% for the year.
Meanwhile, Huber + Suhner (LSE:0QNH) said full-year order intake increased nearly 14% year on year, although net sales declined 3.3% as the Swiss franc strengthened.
Oil prices steady as inventory build weighs
Oil prices were little changed on Thursday as easing tariff concerns around Greenland were offset by rising U.S. crude inventories.
Brent crude slipped 0.3% to $65.02 a barrel, while U.S. West Texas Intermediate fell 0.2% to $60.49.
The American Petroleum Institute reported that U.S. crude inventories rose by just over 3 million barrels in the week ended January 16, following a jump of more than 5 million barrels the previous week. Gasoline inventories increased by 6.21 million barrels, signalling softer demand, while distillate stocks—which include diesel and heating oil—fell by 33,000 barrels.
Official U.S. inventory data from the Energy Information Administration are due later in the session, released a day later than usual because of a U.S. federal holiday on Monday.
