Stoxx 600, FTSE, DAX, CAC, Davos WEF week
Young people holding signs saying “Greenland is not for sale!” They carried banners saying: Attend a demonstration in Nuuk, Greenland, near the U.S. Consulate in Greenland, on January 17, 2026, that brought together nearly a third of the city’s population to protest the U.S. President’s plans to take Greenland.
Alessandro Rampazzo | Afp | Getty Images
LONDON — European stocks opened sharply lower on Monday as traders reacted to U.S. President Donald Trump’s threat to increase tariffs on European countries if they oppose his offer to buy Greenland.
Pan-European Stoxx 600 It had fallen about 0.8% shortly before 8:30 a.m. (3:30 a.m. ET) in London, with all sectors in negative territory.
The collapse in morning markets came after Trump announced on Saturday that his eight European allies would face tariffs starting at 10% on February 1 and rising to 25% on June 1 unless a deal was reached allowing Washington to “buy” Greenland, a semi-autonomous territory that is part of Denmark.
Goods from eight NATO members sent to the US will face increased tariffs “until an Agreement for the Full and Complete Acquisition of Greenland is reached.” Trump stated Saturday on social media platform Truth Social.
Trump said the proposed tariffs would target Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland. European leaders said the tariffs were “unacceptable” and vowed to stand behind Denmark.
European carmakers and the luxury goods sector were hit hard in early trade as investors reacted to the tariff proposals.
The Stoxx Europe 600 Auto and Parts Index fell 2.2% in early deals. volkswagen While it lost value by approximately 3.3%, porsche fell 3.7% and bmw lost 6.6 percent.
Meanwhile, among the luxury names of the continent LVMH down 3.6% Kering down 2.9% hermes fell 3.3% and moncler It was 1.8% lower. Overall, the Stoxx Europe Luxury 10 was last down 2.9%.
In response, Europe’s defense stocks rose. RheinmetallThe continent’s largest defense company gained 1.4%, while its German counterpart Renk gained almost 3.6%, along with the French technology and aerospace giant. Thales It added 2.6%.
Elsewhere, ASM International It rose 1.8% after the Dutch computer chip maker reported stronger-than-expected advance bookings of about 800 million euros ($930 million) for the fourth quarter, following a rebound in Chinese orders and a 669 million-euro increase above forecasts. Preliminary revenues, meanwhile, came in at 698 million euros, above LSEG survey forecasts.
Posts on: ASMLMeanwhile, it fell 2.8% in early trading Monday. The decline comes after the Dutch semiconductor equipment maker hit a record high last week.
Markets will also closely follow the World Economic Forum, which kicks off this week in Davos, Switzerland. Trump will speak at the Forum on Wednesday.
No significant earnings this week, but on the data front, euro zone inflation data is expected.
