European Shares Set To Drift Lower On Greenland Worries

(RTTNews) - European stocks look set to open sharply lower on Monday as investors react to U.S. President Donald Trump's tariff threats over Greenland.

Global markets are facing volatility after Trump vowed to slap a 10 percent tariffs on eight European nations starting Feb.1, which could rise further to 25 percent in June unless the U.S. is allowed to buy Greenland.

Major European Union states decried the tariff threats over Greenland as blackmail on Sunday, with French President Emmanuel Macron asking the EU to activate its "anti-coercion" measure - dubbed its trade "bazooka" - for the first time, injecting fresh trade uncertainty.

Also, it is feared that Trump's threats and diplomacy toward Iran and Venezuela, using military pressure, sanctions and public messaging will have profound long-term costs for his country and the world.

Venezuelan opposition leader Maria Corina Machado's decision to give her Nobel Peace Prize medal to Trump has sparked controversy and criticism.

In Iran, President Masoud Pezeshkian has warned that any attack on Supreme Leader Ayatollah Ali Khamenei would trigger an all-out war.

Speaking to Politico on Saturday, Trump said, "It's time to look for new leadership in Iran."

Beyond tariff and geopolitical concerns, traders await U.S. PCE, GDP and jobless claims reports this week for cues on the Federal Reserve's rate outlook.

Asian markets were broadly lower as investors monitored Greenland developments and digested a slew of data from China, including Q4 GDP numbers.

China's economy expanded by 5 percent in 2025, meeting the government's annual growth target, official data showed.

Industrial production growth for December beat expectations but retail sales and fixed asset investment numbers came in below estimates.

The unemployment rate came in at 5.1 percent last month, unchanged from the November reading. China's new bank lending in 2025 slumped to a seven-year low, raising concerns over demand prospects in the country.

The dollar broadly weakened, helping lift gold more than one percent to another record high above $4,670 per ounce.

Oil prices were little changed as geopolitical tensions around Iran receded following earlier concerns about supply disruptions.

U.S. stocks ended a choppy session modestly lower on Friday amid worries over threats to the Fed's independence and heightened geopolitical risks in Iran and Greenland.

The Dow dipped 0.2 percent after President Trump suggested National Economic Council Director Kevin Hassett may not be his choice to become the next Federal Reserve chair, prompting traders to dial back expectations for rate cuts.

The tech-heavy Nasdaq Composite and the S&P 500 both finished marginally lower.

European stocks ended lower on Friday amid lingering geopolitical tensions and uncertainty surrounding French budget negotiations.

The pan European Stoxx 600 closed flat with a negative bias. France' CAC 40 shed 0.7 percent, the German DAX slid 0.2 percent and the U.K.'s FTSE 100 finished marginally lower.