European stocks dip ahead of Trump's Davos speech
European stocks slipped and precious metals hit fresh highs Wednesday as investors awaited US President Donald Trump's speech at Davos amid his push to seize Greenland.
Markets have been stirred this week by Trump threatening up to 25 percent tariffs on several European countries -- including France, Germany, Britain and Denmark -- in response to their opposition to his Greenland plans.
The move has sparked warnings of retaliation at the World Economic Forum meeting in Davos, with European Union chief Ursula von der Leyen saying that the 27-nation bloc would be "unflinching" in its response to Trump's threats.
US Treasury chief Scott Bessent on Wednesday urged Europeans to avoid "reflexive anger" and sit with Trump to hear his arguments.
Eyes are now on the US president's speech to the annual gathering of the world's economic and political elite later in the day.
"If he sticks to his guns about taking Greenland under US control, and if he continues to sideline his closest allies, then risk sentiment could take another dive lower," said Kathleen Brooks, research director at trading group XTB.
Concerns that the Greenland crisis could escalate saw precious metals -- a go-to in times of turmoil -- pushed to new peaks.
Markets have sunk globally this week, and Wall Street's three main indexes tanked Tuesday as they reopened after a long weekend.
However, Wall Street futures pointed to a recovery Wednesday.
In Asia, Tokyo's stock market fell, while Hong Kong and Shanghai rose.
Japanese bond yields settled back after surging on the back of a pledge by Prime Minister Sanae Takaichi to cut taxes if she wins a fresh mandate in the February snap election.
Her comments saw 40-year yields surge more than a quarter of a percentage point to a record on Tuesday, marking the biggest jump since Trump's "Liberation Day" tariff bombshell in April.
But they fell back Wednesday after Finance Minister Satsuki Katayama called for "everyone in the market to calm down" and highlighted rising tax revenues and the country's lowest reliance on debt issuance in three decades.
In company news, shares in British luxury fashion label Burberry jumped five percent in London after it posted a rise in sales as demand from China improved.
- Key figures at around 1100 GMT -
London - FTSE 100: DOWN 0.1 percent at 10,113.83 points
Paris - CAC 40: DOWN 0.1 percent at 8,052.17
Frankfurt - DAX: DOWN 0.8 percent at 24,513.93
Tokyo - Nikkei 225: DOWN 0.4 percent at 52,774.64 (close)
Hong Kong - Hang Seng Index: UP 0.4 percent at 26,585.06 (close)
Shanghai - Composite: UP 0.1 percent at 4,116.94 (close)
New York - Dow: DOWN 1.8 percent at 48,488.59 (close)
Euro/dollar: DOWN at $1.1709 from $1.1719 on Tuesday
Pound/dollar: DOWN at $1.3403 from $1.3433
Dollar/yen: DOWN at 158.04 yen from 158.21 yen
Euro/pound: UP at 87.36 pence from 87.23 pence
West Texas Intermediate: DOWN 0.5 percent at $60.04 per barrel
Brent North Sea Crude: DOWN 0.5 percent at $64.57 per barrel
T.Cortez--RTC
