European equities mostly traded lower on Thursday, as investor sentiment weakened amid rising geopolitical uncertainty following U.S. threats related to Greenland, coming shortly after the removal of Venezuelan President Nicolas Maduro.
In early trading, Germany’s DAX edged up 0.2%, while France’s CAC 40 slipped 0.1%. The U.K.’s FTSE 100 underperformed, falling 0.3%.
Greenland tensions unsettle markets
Concerns among European investors intensified after U.S. President Donald Trump suggested that military force could be used to acquire Greenland, a semi-autonomous territory governed by Denmark.
The comments followed recent U.S. military action in Venezuela, which resulted in the capture of President Maduro and renewed fears in Europe that Greenland could become the next geopolitical flashpoint.
U.S. Secretary of State Marco Rubio said he plans to meet Danish officials next week, noting that while diplomacy is preferred, national security considerations could justify military options.
Both the United States and Denmark are members of NATO, and any U.S. military action involving Greenland would likely have major implications for the alliance.
German factory orders strengthen
On the economic front, German factory orders rose sharply in November, increasing 5.6% month over month. The data suggested Europe’s largest economy ended the year on a stronger footing. In contrast, British house prices declined 0.6% in December compared with the previous month, according to figures from Halifax.
Despite the regional data, investors remain focused on Friday’s U.S. nonfarm payrolls report, which is expected to play a key role in shaping interest-rate expectations at the Federal Reserve. Policymakers have repeatedly emphasized the labor market as a central factor in future rate decisions, with markets currently pricing in two rate cuts this year.
Sodexo posts organic growth
In corporate news, French catering group Sodexo reported organic revenue growth of 1.8% in its first quarter, slightly above expectations. However, unfavorable currency movements weighed on results, leading to a 2.2% decline in reported revenue.
In the U.K., bakery chain Greggs posted a strong end to the year. Fourth-quarter total sales rose 7.4%, while like-for-like sales at company-owned stores increased 2.9%.
Oil prices rebound
Oil prices moved higher after two consecutive sessions of losses, supported by a larger-than-expected decline in U.S. crude inventories, although developments in Venezuela remained a key focus.
Brent crude futures rose 0.3% to $60.11 per barrel, while U.S. West Texas Intermediate crude gained 0.2% to $56.11 per barrel.
U.S. crude inventories fell by 3.8 million barrels to 419.1 million barrels in the week ended January 2, exceeding market expectations for a modest increase.
Market attention also turned to reports that the Trump administration is considering exerting long-term control over Petróleos de Venezuela SA (PdVSA) as part of a broader strategy to influence Venezuela’s oil industry.
