European equities posted strong gains on Thursday after U.S. President Donald Trump said he would not move forward with tariffs on European countries tied to Greenland, adding that a framework agreement had been reached regarding the Danish territory.
By 03:05 ET (08:05 GMT), Germany’s DAX was up 1.2%, France’s CAC 40 surged 1.3%, and the U.K.’s FTSE 100 gained 0.7%.
Trump backs away from tariff threat
Speaking on Wednesday at the World Economic Forum in Switzerland, Trump ruled out the use of military force and later said on social media that tariffs initially slated for February 1 would no longer be imposed. He added that discussions with NATO Secretary General Mark Rutte had produced the outline of a future deal covering Greenland and, more broadly, the Arctic region.
European markets had sold off sharply earlier in the week after Trump warned of escalating tariffs unless the United States was allowed to purchase Greenland, an autonomous territory of Denmark. While Thursday’s rally reflected relief, uncertainty remains around the long-term strength of the transatlantic alliance.
That uncertainty was underscored by comments from European Central Bank President Christine Lagarde, who said Europe needs a “deep review” to adapt to a changing global order, following visible diplomatic tensions during meetings in Davos.
U.S. inflation data in focus
Europe’s economic calendar is relatively light on Thursday, shifting investor attention to key U.S. releases. Weekly jobless claims are expected to offer insight into labor market conditions, while updated third-quarter GDP figures should provide a read on overall economic momentum.
The most closely watched indicator, however, is likely to be core PCE inflation for November — the Federal Reserve’s preferred measure of price pressures — as markets look for clues on the future path of U.S. interest rates.
Corporate updates across Europe
In company news, Associated British Foods confirmed that underlying sales at its Primark clothing division fell during the Christmas period, in line with expectations outlined in its recent profit warning.
Spain’s Bankinter reported a 14.4% rise in net profit to a record €1.09 billion in 2025, supported by strong growth in fee income and off-balance-sheet funds, which offset weaker net interest income as rates declined.
Swiss healthcare group Galenica said sales rose 5.5% in 2025 to a record level, with growth across all divisions, while reaffirming guidance for a 10–12% increase in EBIT. Meanwhile, connectivity components maker Huber + Suhner posted a nearly 14% rise in annual order intake, although net sales slipped due to the stronger Swiss franc.
Oil prices steady as inventory data weighs
Oil prices were little changed as easing tariff risks helped sentiment, but gains were capped by rising U.S. 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 a build of just over 3 million barrels in U.S. crude stocks for the week ended January 16. Gasoline inventories rose sharply, signaling softer demand, while distillate stocks edged lower. Official data from the Energy Information Administration is due later in the session.
