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  • European markets trade mixed as investors brace for Trump’s Davos appearance: DAX, CAC, FTSE100

    European markets trade mixed as investors brace for Trump’s Davos appearance: DAX, CAC, FTSE100

    European equities showed a mixed performance on Wednesday, with investors adopting a cautious stance ahead of U.S. President Donald Trump’s speech at the World Economic Forum later in the day.

    By 08:05 GMT, Germany’s DAX was down 0.3%, France’s CAC 40 was broadly flat, while the UK’s FTSE 100 edged 0.1% higher.

    Trump heads to Davos

    Market sentiment has been under pressure this week after U.S. President Donald Trump threatened to escalate tariffs on several European allies unless the United States is allowed to purchase Greenland, the autonomous Danish territory.

    Speaking at a press conference late Tuesday, Trump reiterated his position that the island needs to become U.S. territory.

    “I think we will work something out where NATO is going to be very happy and where we’re going to be very happy. But we need it for security purposes. We need it for national security,” he said.

    When asked how far he would go to secure Greenland, Trump offered a brief response: “You’ll find out,”

    raising concerns that he may use the Davos platform to intensify his push — a move that could further strain relations with European allies.

    Earlier on Wednesday, Christine Lagarde, head of the European Central Bank, said the European economy needs a “deep review” to confront “the dawn of a new international order”. Lagarde added that U.S. tariffs would likely have only a modest inflationary impact overall, though Germany would be more affected than France, and argued that Europe would be stronger if it dismantled non-tariff trade barriers within the bloc.

    UK inflation accelerates in December

    UK inflation surprised to the upside in December, with consumer prices rising more than expected. The annual CPI rate climbed to 3.4% from 3.2% in November, above forecasts of 3.3%, according to data released earlier in the session.

    Inflation in Britain remains the highest among the G7 economies, despite weak economic growth. However, economists expect price pressures to ease in the coming months as last year’s increases in energy costs and other regulated prices drop out of the annual comparison.

    Corporate movers in focus

    In company news, Burberry (LSE:BRBY) exceeded expectations for sales growth during the crucial holiday quarter and guided for full-year profit in line with forecasts, helped by improved demand from China and a strategic refocus on its British heritage.

    Premier Foods (LSE:PFD) posted a strong third-quarter performance, reporting a 5.2% increase in branded revenue after better-than-expected Christmas trading.

    Atos (EU:ATO) said preliminary fiscal 2025 revenue reached €8 billion, meeting its target, while net cash outflow was lower than anticipated.

    Barry Callebaut (BIT:1BARN) reported a 9.9% decline in first-quarter sales volumes and announced that Hein Schumacher will take over as chief executive later this month.

    InPost (EU:INPST) said full-year 2025 parcel volumes jumped 25%, driven by strong international growth and a sharp rise in UK deliveries, with total volumes reaching a record 1.4 billion parcels.

    Outside Europe, Netflix (NASDAQ:NFLX) drew attention after beating expectations for fourth-quarter revenue and earnings, while also signalling a pause in share buybacks as it builds cash amid intense bidding competition for Warner Bros Discovery.

    Oil prices slide on Greenland tensions

    Oil prices fell sharply on Wednesday amid concerns that escalating trade tensions linked to the Greenland dispute could weigh on global growth.

    Brent crude futures dropped 1.5% to $63.95 a barrel, while U.S. West Texas Intermediate fell 1.3% to $59.56. Both benchmarks had closed nearly 1.5% higher in the previous session after OPEC+ producer Kazakhstan temporarily halted output at two oilfields, raising supply concerns.

    Beyond geopolitics, markets are awaiting a monthly report from the International Energy Agency later in the day, as well as updates on U.S. crude oil and gasoline inventories. Weekly data from the American Petroleum Institute is due later Wednesday, with official figures from the Energy Information Administration scheduled for Thursday, both delayed by one day due to a U.S. federal holiday earlier in the week.

  • Wall Street Braces for Weak Open as Trade War Anxiety Returns: Dow Jones, S&P, Nasdaq, Futures

    Wall Street Braces for Weak Open as Trade War Anxiety Returns: Dow Jones, S&P, Nasdaq, Futures

    U.S. stock futures are signalling a sharply lower start to Tuesday’s session, pointing to renewed selling pressure as markets reopen after the long holiday weekend.

    Investor nerves have been rattled by fresh concerns over a potential escalation in trade tensions between the United States and Europe, stemming from President Donald Trump’s renewed push to take control of Greenland. Trump has warned that countries opposing the move could face new tariffs, arguing that ownership of the Danish territory is essential to U.S. national security.

    In a post on Truth Social, Trump outlined plans to impose a 10% tariff on imports from Denmark, Norway, Sweden, France, Germany, the U.K., the Netherlands and Finland starting February 1. He added that the duties would increase to 25% from June 1 and remain in force until an agreement is reached allowing the U.S. to purchase Greenland.

    “Investors will be hoping for some sort of de-escalation deal on Greenland which removes the risk of a break-up or at least serious rupture in the Nato alliance,” said AJ Bell investment director Russ Mould. “If the crisis deepens it is unlikely to spell good news for global equities.”

    He added, “Nasdaq looks set to chalk up the biggest declines amid concern about possible retaliatory action from Europe against America’s big tech contingent.”

    U.S. equities ended last week on a soft note. Stocks initially moved higher early on Friday but quickly lost momentum, with trading remaining choppy and directionless for most of the session. The major indices hovered around flat levels before closing modestly lower.

    The Dow Jones Industrial Average slipped 83.11 points, or 0.2%, to 49,359.33. The Nasdaq Composite fell 14.63 points, or 0.1%, to 23,515.39, while the S&P 500 edged down 4.46 points, or 0.1%, to 6,940.01.

    For the week as a whole, the Nasdaq declined 0.7%, while the S&P 500 and the Dow posted losses of 0.4% and 0.3%, respectively.

    Market volatility was also influenced by comments from Trump that cast doubt on whether National Economic Council Director Kevin Hassett remains his preferred candidate to succeed Jerome Powell as Federal Reserve chair.

    “I see Kevin’s in the audience, and I just want to thank you. You were fantastic on television today,” Trump said during at appearance at the White House. “I actually want to keep you where you are, if you want to know the truth.”

    Hassett had been widely viewed as the frontrunner to replace Powell, whose term ends in May, but prediction markets now suggest former Fed Governor Kevin Warsh has moved into the lead following Trump’s remarks.

    The uncertainty around the Fed leadership transition has added another layer of caution for investors already grappling with rising geopolitical risks. Traders remain wary as tensions surrounding Greenland persist, alongside ongoing concerns tied to Venezuela, political unrest in Iran and the war between Russia and Ukraine.

    On the economic front, data from the Federal Reserve showed U.S. industrial production rose more than expected in December. Output increased 0.4%, matching an upwardly revised gain in November, while economists had forecast a modest 0.1% rise.

    Most sectors ended Friday with only small moves, contributing to the muted market close. Commercial real estate stocks were a notable exception, with the Dow Jones U.S. Real Estate Index rising 1.2%.

    Semiconductor stocks also extended their rally from Thursday, lifting the Philadelphia Semiconductor Index by 1.2% to a new record closing high. In contrast, steel stocks retreated, with the NYSE Arca Steel Index falling 1.2% after posting its strongest close in more than 17 years the previous session.

  • European Shares Slide as Greenland Standoff and Tariff Threats Rattle Markets: DAX, CAC, FTSE100

    European Shares Slide as Greenland Standoff and Tariff Threats Rattle Markets: DAX, CAC, FTSE100

    European equities moved lower on Tuesday, extending the previous session’s losses after the United States sent military aircraft to Pituffik Space Base in Greenland, prompting Denmark to dispatch its army chief and additional troops to the Arctic territory in a sharp escalation of tensions.

    Adding to market unease, U.S. President Donald Trump warned he could impose 200% tariffs on French wine and champagne after Paris declined an invitation to join his proposed Board of Peace initiative aimed at resolving global conflicts, saying it “does not intend to answer favorably.”

    On the economic front, Germany’s statistics office Destatis said producer prices fell 2.5% year on year in December, accelerating from a 2.3% decline in November, largely due to a steep drop in energy prices.

    In the U.K., the Office for National Statistics reported that the unemployment rate was unchanged at 5.1% in the three months to November, in line with expectations and the previous period.

    By mid-session, Germany’s DAX was down 1.2%, while France’s CAC 40 and the U.K.’s FTSE 100 were each lower by around 0.9%.

    In corporate news, shares of AstraZeneca (LSE:AZN) fell after the drugmaker said it plans to delist its American Depositary Shares and debt securities from Nasdaq.

    Big Yellow Group (LSE:BYG) also traded lower after the self-storage operator reported that closing occupied space declined by 82,000 square feet across its 111 stores in the third quarter, a period that is typically seasonally weaker.

    Ibstock (LSE:IBST) came under pressure as the building products group said market uncertainty had continued into the start of the new year.

    In contrast, shares of food flavourings specialist Treatt (LSE:TET) rose in London after the company formalised its relationship with major shareholder Dohler Finance.

    French carmaker Renault (EU:RNO) also moved higher after reporting a 3.2% increase in sales volumes in 2025.

    Meanwhile, Informa (LSE:INF) advanced after lifting its growth targets for 2026.

  • FTSE 100: Shares Slide Further on Trump Tariff Warnings and Soft UK Jobs Data; Sterling Holds Firm

    FTSE 100: Shares Slide Further on Trump Tariff Warnings and Soft UK Jobs Data; Sterling Holds Firm

    UK stocks remained under pressure on Tuesday, extending recent losses as fresh tariff threats from U.S. President Donald Trump linked to Greenland weighed on risk appetite, while domestic labour market data added to the negative tone, showing unemployment stuck at elevated levels in November and a slowdown in pay growth.

    By 10:09 GMT, the FTSE 100 was down 1.4%. Sterling, however, strengthened, with GBP/USD up 0.4% at 1.34. Elsewhere in Europe, Germany’s DAX fell 1.6% and France’s CAC 40 slipped 1.3%.

    FTSE 100 round-up

    Shares in RAPT Therapeutics Inc (NASDAQ:RAPT) soared 63.6% after GSK plc (LSE:GSK) said it plans to acquire the company for $58 per share in an all-cash deal that values RAPT at $2.2 billion. The transaction gives GSK access to RAPT’s food allergy pipeline, led by the anti-IgE antibody ozureprubart, which is in Phase IIb development for the prevention of reactions to multiple food allergens including peanut, milk, egg, cashew and walnut.

    In contrast, CPP Group Plc (LSE:CPP) slumped 43.8% after the group said it is reviewing strategic options that include cancelling its AIM listing and moving to a private company structure. The board pointed to difficulties facing smaller listed companies, including “persistent undervaluation, limited liquidity, and the ongoing costs and administrative burden” associated with a public listing.

    Wise PLC (LSE:WISE) jumped more than 13% after the money transfer group beat quarterly revenue expectations and upgraded its profit margin outlook. Wise reported underlying income of £424.4 million for the third quarter of fiscal 2026, up 21% year on year and above the £412 million analyst consensus.

    QinetiQ Group PLC (LSE:QQ.) said it remains on course to meet full-year targets, guiding for an operating margin of around 11% and earnings per share growth of 15% to 20%, after reporting more than £3 billion of orders year to date.

    Big Yellow Group PLC (LSE:BYG) posted third-quarter revenue of £52.3 million, up from £51 million a year earlier, as higher net achieved rents offset lower occupancy during a seasonally weaker period. Like-for-like store revenue increased to £51.9 million from £51 million.

    Shares in Informa PLC (LSE:INF) traded higher after the company lifted its 2025 adjusted earnings guidance to around 55.5p per share, implying underlying growth of 10–15%. Informa also announced a new £200 million share buyback and said it expects full-year revenue of about £4 billion.

    Ibstock PLC (LSE:IBST) dropped 7% after its full-year 2025 update signalled a sharper-than-expected downgrade to future earnings, despite results for the year broadly matching guidance, with adjusted EBITDA expected to be around £71 million.

    Kier Group PLC (LSE:KIE) said first-half trading was in line with board expectations, leaving full-year FY26 guidance unchanged, supported by consistent project delivery and tighter cash management.

    Finally, DFS Furniture PLC (LSE:DFS) rallied 6.8% after upgrading its full-year profit outlook above market expectations. The retailer now expects underlying profit before tax and brand amortisation of £43–50 million, compared with current consensus forecasts of around £41 million.

  • U.S. Futures Weaken as Greenland Tariff Tensions Loom; Netflix Results Ahead: Dow Jones, S&P, Nasdaq, Wall Street

    U.S. Futures Weaken as Greenland Tariff Tensions Loom; Netflix Results Ahead: Dow Jones, S&P, Nasdaq, Wall Street

    Futures tied to the main U.S. equity benchmarks edged lower as investors assessed the risk of new American tariffs targeting several European countries over Greenland. President Donald Trump said discussions on Greenland would take place during his attendance at a major economic forum in Switzerland, while European governments consider how to respond to his demand that the territory come under U.S. ownership. In the U.S., markets are also bracing for a potential Supreme Court decision on the legality of Trump’s tariff measures. Meanwhile, Netflix (NASDAQ:NFLX) is set to release its latest earnings.

    Futures point to losses

    U.S. stock futures were under pressure on Tuesday, signalling a weak start to a shortened trading week shaped by geopolitical uncertainty.

    By 03:07 ET, Dow futures were down 677 points, or 1.4%, S&P 500 futures had fallen 102 points, or 1.5%, and Nasdaq 100 futures were lower by 449 points, or 1.8%.

    Wall Street was closed on Monday for Martin Luther King Jr. Day, but global markets have started the week on the back foot. Sentiment has been dented by Trump’s warning that tariffs could be imposed on multiple European nations unless the U.S. is allowed to take control of Greenland. Trump has said the duties would start at 10% and could rise to as much as 25% in June if his demands regarding the semi-autonomous Danish territory are not met.

    Analysts at Capital Economics warned that, if enacted and sustained, the tariffs could shave “something between” 0.2% and 0.5% off euro zone GDP, with Germany likely to bear a significant share of the impact.

    “In practice though, we doubt that they will be implemented as advertised. We also think the [European Union] will be cautious in any retaliation in an effort to avoid further escalation,” the analysts said.

    Trump flags Greenland talks in Davos

    Trump said he plans to hold talks on Greenland during his visit this week to the World Economic Forum in Davos, Switzerland.

    Posting on social media, Trump said he had a “very good” call with NATO Secretary General Mark Rutte. The president, who is scheduled to address business and political leaders in Davos on Wednesday, added that he would meet with “various parties” during the trip, without naming them.

    Reiterating his stance, Trump wrote: “As I expressed to everyone, very plainly, Greenland is imperative for National and World Security. There can be no going back — On that, everyone agrees!”

    European governments are reportedly debating their response, including the possibility of imposing steep tariffs on €93 billion worth of U.S. goods. France has also called on the EU to consider deploying an anti-coercion tool that could extend to restrictions on investment or banking activity.

    Such measures have been described as a potential EU “bazooka”, raising the risk of a serious rift between Brussels and Washington after a trade agreement was reached last summer. The situation has also revived questions about the future cohesion of NATO.

    Supreme Court ruling in focus

    Hovering in the background is a long-anticipated Supreme Court ruling on the legality of Trump’s sweeping import tariffs on a range of countries.

    Trump has justified the measures under the 1977 International Emergency Economic Powers Act (IEEPA), which grants the president broad authority over international economic transactions during a national emergency. However, justices voiced notable scepticism during hearings late last year, prompting markets to expect a possible ruling against the administration.

    Media reports suggest a decision could be issued as soon as Tuesday. Even so, U.S. Trade Representative Jamieson Greer told the New York Times that officials are preparing alternative duties that would “start the next day” should the court strike down the current tariffs.

    Gold sets fresh record

    Gold prices climbed to new record highs on Tuesday, as uncertainty surrounding U.S. demands over Greenland kept investors cautious and supported demand for safe-haven assets.

    Both gold and silver hit all-time highs earlier in the week following Trump’s latest tariff threats. While silver saw some profit-taking on Tuesday, gold remained well supported, helped by a weaker U.S. dollar.

    Spot gold rose 1.0% to $4,724.83 an ounce, while gold futures jumped 3.0% to $4,730.50 an ounce by 03:49 ET.

    Netflix earnings awaited

    On the earnings front, Netflix is due to report its quarterly results after the close of U.S. trading on Tuesday.

    Bloomberg consensus estimates point to earnings per share of $0.55 on revenue of $11.96 billion. However, investor attention may focus more on any commentary surrounding Netflix’s interest in Warner Bros. Discovery (NASDAQ:WBD), which has also attracted a competing bid from Paramount Skydance.

    The contest for Warner Bros. Discovery is expected to stretch over several months and could face regulatory scrutiny in both the U.S. and Europe. Netflix sees the group’s assets — including HBO Max and franchises such as “Harry Potter” and “Friends” — as a potential growth driver, even as it faces pressure to demonstrate returns from heavy investment in advertising and video games, despite hits like “Stranger Things” and its expansion into live sports.

  • European Equities Extend Decline as Tariff Threats Continue to Sap Confidence: DAX, CAC, FTSE100

    European Equities Extend Decline as Tariff Threats Continue to Sap Confidence: DAX, CAC, FTSE100

    European shares moved lower again on Tuesday, deepening the sell-off seen in the previous session as investors remained uneasy about the potential economic fallout from new trade tariffs.

    By 08:05 GMT, Germany’s DAX was down 0.9%, France’s CAC 40 slipped 0.8% and the UK’s FTSE 100 fell 0.8%.

    Tariff concerns cloud growth outlook

    Regional markets slid sharply on Monday after US President Donald Trump threatened to escalate tariffs against several European allies unless the United States is allowed to buy Greenland, the autonomous territory of Denmark.

    That cautious mood looked set to persist on Tuesday as US markets reopened after a public holiday and were expected to come under renewed pressure. Trump said late on Monday that he would meet a number of officials at the World Economic Forum in Davos, Switzerland, to discuss the issue, while restating his stance on Greenland, saying that “Greenland is imperative for National and World Security. There can be no going back.”

    European leaders have broadly dismissed Trump’s demands and are reportedly preparing countermeasures should tariffs be imposed. An emergency meeting of EU leaders is scheduled for Thursday, raising the risk of a wider transatlantic trade dispute.

    Adding to the cautious tone, Citigroup on Tuesday downgraded European equities, citing heightened uncertainty around the earnings outlook.

    Slower UK wage growth fuels rate-cut expectations

    UK economic data released Tuesday pointed to easing inflationary pressure. The unemployment rate remained elevated in November, while wage growth cooled, reinforcing expectations that the Bank of England could continue cutting interest rates this year.

    The jobless rate held at 5.1% in the three months to November, unchanged from the previous period and the highest level since early 2021. Meanwhile, average earnings excluding bonuses rose 4.5% year on year, down slightly from 4.6% previously.

    The Bank of England lowered its key rate by 25 basis points to 3.75% in December and is next due to meet in early February.

    In Germany, producer prices declined largely in line with forecasts in December, falling 2.5% year on year, according to data from the federal statistics office.

    UK pharma names in focus

    On the corporate front, UK pharmaceutical companies drew attention. GSK (LSE:GSK) said it had agreed to acquire RAPT Therapeutics (NASDAQ:RAPT), a California-based clinical-stage biopharmaceutical firm, in a deal valuing the target’s equity at about $2.2 billion.

    Separately, AstraZeneca (LSE:AZN) announced plans to delist from Nasdaq and move to a direct listing of its ordinary shares and debt on the New York Stock Exchange, effective after the close of trading on January 30.

    Oil steadies after volatile trade

    Oil prices were relatively subdued on Tuesday, consolidating after sharp swings in the previous session triggered by Trump’s renewed tariff threats toward Europe.

    Brent crude futures slipped 0.5% to $63.63 a barrel, while US West Texas Intermediate fell 0.6% to $58.97.

    Beyond geopolitical tensions, attention is turning to supply dynamics, with a closely watched monthly report from the International Energy Agency due on Wednesday. The IEA has repeatedly warned of a potential supply surplus emerging in 2026.

    The report follows last week’s outlook from the Organization of the Petroleum Exporting Countries, which struck a more optimistic tone on oil demand for 2026 and 2027.