Europe open: Shares slump as EU mulls reply to Trump Greenland tariff threat

(Sharecast News) - European share markets slumped at the open on Monday as the threat of another trade war loomed over US President Donald Trump's threat to annexe Greenland.

The pan-regional Stoxx 600 index was down 1.03% to 608 at 0816 GMT with all major bourses in the red. Gold and silver both hit record highs as investors sought safe havens from market volatility.

Trump on the weekend said he would impose an extra 10% tariff from February 1 on eight allies who opposed his attempt to take-over the semi-autonomous Danish territory. The levy would rise to 25% on June 1 if a deal was not agreed.

European leaders were meeting to prepare a response that could involve €93bn in retaliatory tariffs against the US and also the Anti Coercion Instrument for the first time which would limit American companies from the bloc's market.

The proposed US tariffs would be target against Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland, the authoritarian Trump said in a social media post.

European troops deployed to Greenland for military exercises over the weekend. The possibility of military escalation between allies saw shares in defence stocks rise, with Saab, BAE, Thales, Hensoldt, Renk and Dassault all higher.

Reporting by Frank Prenesti for Sharecast.com