Europe open: Stoxx slumps again as Trump ups Greenland rhetoric

(Sharecast News) - European shares fell sharply again at the open on Tuesday as US President Donald Trump's bellicose language over his plan to annex Greenland and impose bigger tariffs on countries that oppose him continued to spook investors. The pan-regional Stoxx 600 index was down 0.74% to 602.58 at 0819 GMT. Germany's DAX was down 1%, the UK's FTSE 100 fell 0.86% and France's CAC 40 was 0.87% lower.

Trump, who is headed to the World Economic Forum in Davos, Switzerland repeated his assertion that the US "had to have" the semi-autonomous Danish protectorate. He said he would impose an additional 10% tariff starting February 1 on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Britain, rising to 25% on June 1 if no deal was agreed.

In response the European Union was mulling economic counter measures, including cutting US access to the bloc's single market.

"What happens next for financial markets will ultimately depend on President Trump's actions in the coming days. Greenland continues to be the focus for investors. The President posted a picture of himself holding a US flag on Greenland, suggesting that the territory will be owned by the US this year," said XTB research director Kathleen Brooks.

"However, he also said that he will hold a Greenland meeting at Davos, after a good conversation with the Nato secretary general and former Dutch PM, Mark Rutte. For now, Trump is sticking to his guns and said that there is 'no going back' on his Greenland pledge. Thus, the meeting in Davos later this week will be critical."

In equity news, money transfer fintech Wise jumped almost 10% after reporting a 21% rise in third quarter underlying income.



Reporting by Frank Prenesti for Sharecast.com