European shares rebound as Trump withdraws tariff threats over Greenland

European shares rebounded on Thursday after US President Donald Trump abandoned tariff threats linked to Greenland and ruled out using force to seize the autonomous Danish territory.

The pan-European STOXX 600 climbed 1% by 0802 GMT, regaining some poise after a revival of trade war jitters shaved 1.9% off the benchmark index this week through Wednesday.

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.

While details were scant, Trump’s comments were enough to lift the risk sentiment among investors who have been worried about a potential trade war.

Investors are also parsing a batch of financial updates from companies, looking for clues on profit outlook and demand trends.

Shares of Volkswagen, Europe’s largest carmaker, climbed 4.3% after the company reported better-than-expected net cash flow for 2025.