LONDON — European stocks advanced on Thursday after U.S. President Donald Trump said a “framework” agreement had been reached over Greenland, and called off imposing escalating tariffs on a group of European countries.
The pan-European Stoxx 600 was 1.13% higher shortly after the opening bell in London.
Global markets are rebounding after Trump announced Wednesday that he and NATO Secretary General Mark Rutte had agreed on a “framework of a future deal” involving Greenland. As a result of that negotiation, Trump said he would no longer impose higher tariffs on European allies.
Trump, who had addressed delegates at the World Economic Forum in Davos, Switzerland, described the framework as more of a “concept” in an interview with CNBC’s Joe Kernen, saying it would involve U.S.-European collaboration on a proposed Golden Dome missile defense system and access to mineral resources in Greenland.
When pressed for specifics, Trump said, “it’s a little bit complex, but we’ll explain it down the line.”
It will likely alleviate concerns among market watchers about the fate of NATO. The European Aerospace and Defense index was last seen down 1.11%.
Autos and pharma were particularly exposed to tariffs, given their export levels to the U.S. Auto-linked stocks were 2.47% higher and healthcare rose 1% in early dealmaking.
It’s unclear what will happen to the EU-U.S. trade deal after European lawmakers suspended the approval of the EU-U.S. trade agreement reached last year.
Gold, a safe-haven asset, surged to consecutive fresh highs amid the geopolitical uncertainty but cooled slightly on Thursday. U.S. gold futures for February delivery dipped 0.25% to $4,825.70 per ounce on Monday, after earlier hitting a record high last week. Spot gold edged lower.
The depreciation of the U.S. dollar has been a key talking point over the past few months, and especially in recent weeks as investors wobbled on America. The dollar edged up from three-week lows against the euro and the Swiss franc following Trump’s Davos address. It was last seen flat against the pound and euro, but slightly lower against the Swiss franc at 0.1%.
Investors on both sides of the Atlantic will be mulling Trump’s statements regarding the Federal Reserve. In a wide-ranging interview with CNBC’s Joe Kernen in Davos, Switzerland, on Wednesday, the U.S. president indicated that he has made a decision over its next chair and is not concerned if Powell stays at the central bank.
CNBC will be speaking to more CEOs and political leaders at the World Economic Forum on Thursday, ranging from the chief executives of Carlsberg, Merck, SAP, and Vestas, as well as Latvian President Edgars Rinkēvičs, Spanish Economy Minister Carlos Cuerpo, and Irish Taoiseach Michael Martin.
Elsewhere, Volkswagen‘s net cash flow rose around 20% year-on-year, according to a statement on the company’s preliminary results. Its share price moved 5.65% higher Thursday, though some of this may be driven by reaction to tariff news.
There are no major earnings or data releases Thursday.