European equities moved modestly higher on Wednesday as investors kept a close eye on upcoming diplomatic talks that could shape Greenland’s future.
By mid-morning in Europe, Germany’s DAX index was up 0.1%, France’s CAC 40 added 0.4%, and the UK’s FTSE 100 gained 0.2%, reflecting cautious optimism across regional markets.
Greenland talks dominate investor focus
Geopolitical developments remained at the forefront of market sentiment, with attention centered on a meeting involving U.S. Secretary of State Marco Rubio, alongside officials from Greenland and Denmark. The talks follow repeated statements by Donald Trump, who has argued that the United States should control Greenland to prevent Russia or China from gaining influence over the strategically important, resource-rich Arctic territory.
Both Greenland and Denmark have firmly stated that the semi-autonomous region is not for sale. However, Trump has previously declined to rule out the use of force, keeping geopolitical tensions elevated.
Elsewhere, unrest in Iran continued to weigh on global sentiment. The U.S.-based HRANA rights group said the death toll from ongoing protests has surpassed 2,500, as authorities intensify efforts to suppress the demonstrations. Trump on Tuesday encouraged protesters to continue, saying assistance was forthcoming.
U.S. inflation data back in focus
With few major European economic releases scheduled, investors turned their attention back to the U.S. data calendar. Recent figures showed American consumer inflation remained relatively contained, reinforcing expectations for potential interest-rate cuts in 2026.
Upcoming U.S. producer price inflation and retail sales data are expected to offer further insight into the policy outlook of the Federal Reserve.
BP warns of sizable impairment charges
In corporate news, BP came under scrutiny after the oil major warned it expects $4 billion to $5 billion in impairments for the fourth quarter. The charges are largely linked to its energy transition businesses, alongside weaker oil trading performance.
BP has recently signaled a strategic pivot back toward its core oil and gas operations, stepping away from earlier ambitions to aggressively expand into green energy.
Elsewhere, British education group Pearson reported an acceleration in sales growth to 8% in the final quarter of the year and said it expects operating profit to rise by around 6% in 2025.
On Wall Street, investors were preparing for more major bank earnings later in the session, with results due from Citigroup, Bank of America, and Wells Fargo, following stronger-than-expected earnings from JPMorgan Chase on Tuesday.
Oil prices ease after recent rally
Oil prices retreated on Wednesday, giving back some of the gains seen earlier in the week as U.S. crude inventories rose and Venezuela resumed exports. However, supply risks linked to Iran continued to support the market.
Brent crude futures fell 0.8% to $64.96 a barrel, while U.S. West Texas Intermediate dropped 0.8% to $60.69 a barrel. Both benchmarks had surged more than 2.5% on Tuesday, pushing prices to multi-week highs after four consecutive days of gains.
Data from the American Petroleum Institute showed U.S. crude stockpiles increased by 5.23 million barrels in the week ended January 9. Official inventory figures from the Energy Information Administration are due later on Wednesday.
Meanwhile, OPEC member Venezuela has restarted crude exports under a deal between Caracas and Washington, following the U.S. capture of Venezuelan leader Nicolás Maduro.
At the same time, escalating protests in Iran — the fourth-largest oil producer within OPEC — have renewed fears of potential supply disruptions.
