European markets set for a lackluster open; geopolitics in focus
LONDON — European markets are expected to open slightly lower on Friday as investors digest events in Davos, including Ukrainian President Volodymyr Zelenskyy’s harsh speech on the continent.
of england FTSE100 and Germany DAX While it is expected to open horizontally, France’s CAC 40 According to IG Group’s data, the index was last seen 0.15% lower.
European stocks finished higher on Thursday after US President Donald Trump said a “framework” agreement on Greenland had been reached and the imposition of increased tariffs on a group of European countries was canceled.
This comes after intense speculation about tit-for-tat tariffs among US business leaders welcomed Europe taking a tougher stance against Trump over news of the framework. JP Morgan EMEA co-CEO Conor Hillery said it was “very good for business”.
However, Zelenskyy criticized the response of European leaders to geopolitical threats in his speech at the WEF in Davos. He accused Europe of being “lost” as he tried to persuade Trump to “change” and support rather than unite to defend itself.
Zelenskyy also said that tripartite meetings will be held between Ukraine, Russia and the United States in the United Arab Emirates on Friday and Saturday to end the war in his country.
Investors will take note of who sits on the “Peace Board” chaired by Trump and originally designed to oversee the demilitarization and reconstruction of Gaza. But Trump said he thought the body was taking on a role that could rival the United Nations, which could cause alarm among many U.S. allies. Trump rescinded Canadian Prime Minister Mark Carney’s invitation to attend overnight.
Trump also said the US had an “armada” heading towards Iran amid the government’s brutal crackdown on protesters in the oil-producing state.
“We have a lot of ships heading in that direction, just in case… I don’t want anything to happen, but we’re watching them very closely,” Trump told reporters aboard Air Force One.
March futures contracts of benchmark Brent crude oil It rose 0.97% on Friday.
As for the companies, Ericsson said in its filing that it was planning a buyback plan worth 15 billion Swedish krona ($1.7 billion).
The Swedish telecommunications giant reported adjusted earnings before interest and taxes of 12.26 billion kroner for the last quarter of 2025, excluding restructuring costs. This comes in above estimates of 10.09 billion kroner, according to an Infront survey cited by Reuters.
President and CEO Börje Ekholm said in a statement that he expects the radio access network to remain stable in 2026.
“The critical and enterprise markets where we are well positioned are expected to grow. In this environment, we plan to increase defense investments in 2026 while continuing to optimize our cost base to support margins and cash flow generation,” he added.
Ubisoft shares tumbled as much as 34% on Thursday following the announcement of a major restructuring and the cancellation of six games. The maker of Assassin’s Creed said it expects to make an operating loss of about 1 billion euros ($1.17 billion) in the fiscal year ending in 2026, following a 650 million euro loss caused by restructuring, and is considering selling some assets.
Market watchers will also note that the Supreme Court decision on Trump’s attempt to fire Federal Reserve Governor Lisa Cook puts central bank independence back into focus. After this week’s controversy, Cook appears safe.
Asia-Pacific markets rose on Friday, tracking Wall Street’s gains from the previous session, as geopolitical concerns eased and investors evaluated the Bank of Japan’s decision to keep interest rates steady.
Futures contracts on the S&P 500 traded higher Thursday night after major averages posted back-to-back gains.
— CNBC’s Hugh Leask and Lucy Handley contributed to this report.
