Global Economy
European Shares Set to Open Lower Amid Rising Greenland Trade Tensions
European equity markets are expected to start Tuesday in the red after a sharp drop on Monday, as President Donald Trump threatens to impose 100 % tariffs on the EU unless his demands over Greenland are met. The heightened rhetoric has forced EU leaders to schedule an emergency summit in Brussels, while Trump will appear at Davos to press the issue further. The automotive and luxury sectors were the biggest losers in the previous session, whereas defense stocks rallied on the back of renewed geopolitical risk. Futures on the Euro Stoxx 50 and Stoxx 600 are already trading down, hinting at a tough start for the continent’s markets.
Listen to this article
Unlock audio versions of premium articles and more with a Pro subscription.
European equities likely to open lower on Tuesday
Date: Tuesday, 20 January 2026
Shares across the continent are set to begin the trading day in the red, extending the losses recorded on Monday. The market sentiment has deteriorated sharply after U.S. President Donald Trump announced a hard‑line stance, threatening to impose 100 % tariffs on European imports unless his demands regarding Greenland are satisfied. Trump also hinted that the use of force would not be ruled out, heightening investor anxiety.
In response to this verbal escalation, EU leaders are scheduled to hold an emergency meeting in Brussels on Thursday to coordinate a common reply. Trump is also expected to attend the World Economic Forum in Davos on Wednesday, where he will meet various groups to discuss the Greenland issue.
Last Monday, European markets posted their biggest single‑day decline in nearly two months, pressured by fears of a hardening trans‑Atlantic trade relationship. The automotive and luxury sectors were among the biggest losers, while some defence stocks moved in the opposite direction, gaining from the renewed geopolitical tension.
Ahead of the open, futures on the main European indices – the Euro Stoxx 50 and the Stoxx 600 – were down at least 0.1 %, signalling another session of pressure for the Old Continent’s equity markets.
- Key sectors affected: automotive, luxury, defence
- Upcoming events: EU emergency summit (Thursday), Davos forum (Wednesday)
- Market indicators: Euro Stoxx 50 futures –‑0.1 %, Stoxx 600 futures –‑0.1 %