European stocks set to end five-week winning streak after Greenland turmoil

FRANKFURT: European shares dipped on Friday and were set to snap their longest run of weekly gains since May, as investors assessed the potential fallout from the latest flare-up in trade tensions involving Greenland.

The pan-European STOXX 600 edged down 0.1percent by 0950 GMT, poised to end a five-week winning streak. The benchmark index has lost 1percent so far this week.

“We’ve seen a general increase in uncertainty this year. Even if the Greenland issue seems resolved for now, investors are holding back because they’re worried that it could come up again,” said Michael Field, chief European equity strategist at Morningstar.

Markets were jolted this week after US President Donald Trump threatened to implement tariffs on eight European countries until Washington is allowed to buy Greenland. Though he later withdrew the threat, citing an agreement with NATO, investors remain wary of tariffs being used as a bargaining chip.

“Few are celebrating the de-escalation because of how pointless and reckless they view this latest test of NATO’s credibility and cohesion,” strategists at Atlantic Council said.

“They know it’s likely only a temporary reprieve and hardly the last transatlantic crisis they can expect from this US administration.” Travel and tech stocks were among the biggest laggards on the STOXX 600, falling 1.1percent and 1percent, respectively.

Telecom and energy gained 1.1percent each, capping the losses. A survey showed that euro zone business activity expanded more slowly than expected this month. US Purchasing managers’ index figures, due later in the day, are also expected to offer fresh clues on the economic momentum.

“With the 10percent Greenland tariffs off the table, a further trade war escalation in the short run is avoided. The economy can do without extra turbulence, because surveys still indicate only moderate GDP growth is ahead despite increased investment plans,” economists at ING wrote in a note.

BASF dropped 1.1percent after preliminary figures showed the German chemical giant’s profit fell in 2025 due to lower margins and negative currency effects. French lender BNP Paribas was flat. The bank plans to cut around 1,200 jobs at its asset management unit by the end of 2027, Reuters reported on Thursday.