European equities traded mostly higher on Thursday as investors weighed geopolitical developments involving Greenland and Iran, alongside stronger-than-expected economic growth data from the United Kingdom.
Germany’s DAX advanced 0.4%, while the UK’s FTSE 100 gained 0.5%. In contrast, France’s CAC 40 slipped 0.2%.
Greenland and Iran remain in focus
Geopolitical concerns stayed at the forefront after U.S. President Donald Trump voiced optimism about reaching an agreement on Greenland, following high-level talks between U.S., Danish, and Greenlandic officials.
“I think something will work out,” Trump said, even as Denmark’s foreign minister Lars Lokke Rasmussen acknowledged a “fundamental disagreement” with Washington after meetings at the White House.
The discussions included talks with Secretary of State Marco Rubio and Vice President JD Vance. Meanwhile, French President Emmanuel Macron convened an emergency defence cabinet, as France prepared to send military personnel to Greenland for a joint exercise organized by Denmark and Greenland, an overseas Danish territory.
Several allied countries, including Germany, Norway, and Sweden, have already begun deploying troops to Greenland in a show of support.
Market sentiment was also helped by easing tensions around Iran. Trump said he had been informed that killings linked to Iran’s crackdown on protests were declining and that there was no current plan for large-scale executions. His remarks followed earlier fears that the U.S. could intervene militarily after repeated warnings issued during the unrest.
UK economy posts stronger growth
Away from geopolitics, data released earlier Thursday showed the UK economy expanded by a better-than-expected 0.3% in November. Economists had forecast monthly growth of just 0.1%.
The Bank of England expects the British economy to show flat growth over the October-to-December 2025 period, though it estimates underlying quarterly growth at around 0.2%.
Corporate updates across Europe
In the corporate sector, Richemont drew attention after the Swiss luxury group reported a rise in third-quarter sales. Strong demand in the Americas, Japan, and the Middle East helped offset negative currency effects.
Elsewhere, Mitchells & Butlers posted robust first-quarter results, reporting like-for-like sales growth of 4.5% as the pub and restaurant operator continued to outperform across its business segments.
UK homebuilder Taylor Wimpey warned that its operating profit margin could come under pressure in 2026, citing a weaker opening order book and softer pricing on bulk sales.
Asset manager Schroders said its 2025 full-year results are expected to beat market expectations, supported by higher income and stable costs.
In the United States, investors were also preparing for additional earnings releases later in the session from Goldman Sachs, Morgan Stanley, and BlackRock.
Oil prices slide sharply
Oil prices fell sharply on Thursday, ending a five-day rally after Trump signaled a more cautious approach toward Iran, easing concerns about near-term supply disruptions.
Brent crude futures dropped 4.6% to $63.46 a barrel, while U.S. West Texas Intermediate crude declined 4.8% to $59.06 a barrel. Prices had surged more than 10% over the previous five sessions on fears that unrest in Iran could trigger U.S. military action and disrupt production or shipping routes.
Trump reiterated on Wednesday that killings during Iran’s nationwide protests appeared to be easing and said he believed there was no current plan for mass executions.
