Key Moments
- European stocks advanced, with the STOXX 600 up 1% by 0802 GMT after recent trade-related weakness.
- U.S. President Donald Trump dropped tariff threats tied to Greenland and ruled out using force to take the territory.
- Volkswagen shares jumped 4.3% after the automaker reported net cash flow for 2025 that exceeded expectations.
Market Overview
Jan 22 (Reuters) – European equity markets moved higher on Thursday after U.S. President Donald Trump stepped back from earlier tariff threats associated with Greenland and explicitly rejected the idea of using military force to take control of the Danish autonomous territory.
The broader market reaction was visible in the pan-European STOXX 600, which was up 1% by 0802 GMT. The gain helped the index recoup part of the losses accumulated earlier in the week, when renewed anxiety over trade tensions had driven a 1.9% decline through Wednesday.
Relief After Tariff Threats Are Dropped
Trump said he withdrew the tariff threat following a meeting with NATO Secretary General Mark Rutte, in which they had reached the framework of a deal for Greenland’s future.
Although few specifics were disclosed, the remarks were sufficient to improve risk appetite among market participants who had been focused on the possibility of an escalation into a broader trade conflict.
Corporate News in Focus
Beyond geopolitics and trade headlines, investors are evaluating a range of corporate financial updates, seeking indications about earnings prospects and shifts in demand.
Automakers featured prominently, with Volkswagen, Europe’s largest car manufacturer, standing out after releasing new financial information.
| Company / Index | Detail | Market Reaction |
|---|---|---|
| STOXX 600 | Pan-European benchmark index | Up 1% by 0802 GMT, after a 1.9% decline earlier in the week |
| Volkswagen | Reported better-than-expected net cash flow for 2025 | Shares rose 4.3% |
Volkswagen Leads Individual Movers
Shares of Volkswagen surged 4.3% after the company announced net cash flow projections for 2025 that surpassed market expectations. The performance of Volkswagen offered additional support to the broader market as investors responded positively to the improved financial outlook.
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