European shares erased declines after US President Donald Trump said he won’t use excessive force in his pursuit of Greenland.
The Stoxx Europe 600 Index was little changed at the close after earlier dropping as much as 0.9%. Trump said he was seeking immediate negotiations about the acquisition of Greenland in a speech at the World Economic Forum in Davos. Meanwhile, the European Parliament will delay a vote to ratify the bloc’s trade agreement with the US, according to people familiar with the matter.
“We probably won’t get anything unless I decide to use excessive strength and force where we would be, frankly unstoppable, but I won’t do that,” Trump said.
A UBS Group AG basket of stocks exposed to defense spending fell 1.3%, and renewable stocks also declined.
Although Trump removed the downside scenario for Greenland and helped the market partly recover from losses, “it does not change his demands and leaves the tariff threat in place,” said Wolf von Rotberg, equity strategist at Bank J Safra Sarasin.
Markets have been rattled this week by the latest threats from Trump on countries that have opposed his demand for Denmark to hand over Greenland to the US. The optimism that marked the start of the year has been now put to test as political tensions add to extended valuations and positioning, with the main regional benchmark now 1.8% higher year-to-date.
Elsewhere, mining stocks outperformed, as copper prices advanced after Goldman Sachs Group Inc. forecast continued flows of the metal into the US.
Among individual movers, Danone SA slid 8.4% after one of its infant formula products was pulled from shelves in Singapore. Barry Callebaut AG shares gained 3.3% after it appointed former Unilever Plc boss Hein Schumacher to succeed Peter Feld as chief executive officer. Burberry Group Plc rose 5.0% as sales advanced over the key holiday period.
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With assistance from Michael Msika and Sagarika Jaisinghani.
This article was generated from an automated news agency feed without modifications to text.
