European Shares Rise as Investors Monitor Greenland Ownership Talks and Iran Developments

European equities advanced at the start of trading on Thursday, with the pan-European Stoxx 600 gaining 0.33% shortly after the opening bell in London. Market participants weighed fresh geopolitical signals from discussions over Greenland’s sovereignty and from the latest statements on Iran, while also digesting corporate earnings and a round of economic data from across the region.

A high-level meeting in Washington on Wednesday brought together officials from the United States, Denmark and Greenland to address the future status of the Arctic island. According to Danish representatives, the talks concluded with “fundamental disagreement” on ownership, though all sides agreed to continue the dialogue. U.S. President Donald Trump has characterised the semi-autonomous Danish territory as vital to American national security interests and has publicly threatened to act unilaterally, including by force, if diplomatic efforts fail. In comments posted on social media ahead of the meeting, Trump stated that any outcome short of Greenland entering the United States would be “unacceptable.”

The prospect of an expanded U.S. presence in the Arctic has kept regional investors on alert. Greenland, situated strategically between North America and Europe and rich in natural resources, has long attracted geopolitical attention. Wednesday’s encounter at the White House underscored the widening gap between Copenhagen and Washington, though no immediate policy changes were announced.

Elsewhere, the situation in Iran remained in focus after Trump warned of possible military action should Tehran carry out death sentences against protesters detained during recent nationwide demonstrations. On Wednesday night, the U.S. president adopted a more reserved stance, noting he had been informed that executions had been halted and adding that he would “watch it and see” before determining any further response. In the early hours of Thursday, Iranian authorities reopened the country’s airspace, reversing a temporary closure that had suspended most incoming and outgoing flights.

The generally calmer tone around Iran and the absence of new sanctions supported a modest uptick across several European sectors. Shares in resource-linked companies and industrial groups contributed to the broader advance, while defensive segments such as utilities traded largely flat.

On the corporate front, luxury goods conglomerate Richemont reported results ahead of the session. Third-quarter sales rose 4% year on year to €6.4 billion ($7.4 billion) and climbed 11% at constant exchange rates. The owner of brands including Cartier cited solid demand in most regions, highlighting the United Kingdom and Italy as bright spots. The figures offered an early boost to consumer discretionary stocks across Europe.

In macroeconomic news, the Office for National Statistics said U.K. gross domestic product expanded 0.3% in November, exceeding the 0.1% growth anticipated by economists surveyed by Reuters. Despite the stronger-than-expected monthly reading, sterling slipped to $1.3436 as traders assessed the broader outlook. ING Developed Markets Economist James Smith told CNBC prior to the data release that growth is likely to ease to 0.9% in the 2026 fiscal year from an estimated 1.4% this year, citing the fading effect of recent government spending increases and subdued investment sentiment.

Imagem: Finances

U.K. government bond prices edged higher in the wake of the GDP figures. The benchmark 10-year gilt yield was less than one basis point above Wednesday’s close, while yields on the two- and five-year maturities were up around three basis points, reflecting cautious positioning ahead of key budget announcements expected later in the year.

Investors are also awaiting a batch of additional indicators due Thursday, including consumer-price readings from Spain and France and the euro-area trade balance. The trade data will be published by Eurostat, the European Union’s statistical agency, which provides official figures on goods and services flows across the bloc (Eurostat website).

Sentiment across the continent remains sensitive to any escalation in the Greenland discussions or a shift in U.S.–Iran rhetoric. For the moment, the combination of stable corporate earnings, slightly better U.K. growth numbers and the easing of immediate geopolitical threats has allowed European markets to start the day on a positive footing.

Crédito da imagem: Dado Ruvic/Reuters