European shares fell, extending this week’s selloff on renewed trade-war tensions as focus turns to US President Donald Trump’s scheduled trip to the World Economic Forum in Davos.
The Stoxx Europe 600 Index dropped 0.6% by 12:34 p.m. in London, bringing this week’s declines to about 2.5%. Banks and financial services were the biggest laggards on Wednesday, while miners and chemicals outperformed.
The UK’s FTSE 250 Index edged lower as inflation accelerated for the first time in five months.
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 only 1.2% higher year-to-date.
Among individual movers, Danone SA slid 6.0%, after one of its infant formula products was pulled from shelves in Singapore. Barry Callebaut AG shares jumped 2.2% after it appointed former Unilever Plc boss Hein Schumacher to succeed Peter Feld as chief executive officer. Burberry Group Plc rose 4.5% as sales advanced over the key holiday period.
Focus will turn later to Trump’s speech from Davos, where he will meet with several parties to discuss Greenland. Trump arrived in Switzerland to attend the forum and is set to deliver his speech at its scheduled time despite his flight being delayed by a mechanical issue.
“Any hope for a quick resolution of the US-EU standoff over Greenland is premature,” said Panmure Liberum strategist Joachim Klement.
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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.
