European Equity Markets Stabilize After Donald Trump Moderates Greenland Rhetoric in Davos

European markets closed flat after Donald Trump ruled out force in acquiring Greenland. The STOXX 600 recovered from earlier losses as tariff fears eased.

Insights:
European equity markets staged a recovery from significant intraday losses on Wednesday, January 21, 2026, as the STOXX 600 closed flat at 602.67 points. Earlier in the session, the pan-European index had fallen by nearly 1%, extending a volatile week where it touched losses of nearly 3%. The stabilization followed a speech by President Donald Trump donald trumpof the United States USUSat the World Economic Forum in Davos, Switzerland CHCH, where he moderated his rhetoric regarding the acquisition of the autonomous territory of Greenland belonging to Denmark DKDK.
The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, January 20, 2026. REUTERS/staff
The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, January 20, 2026. REUTERS/staff
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