European markets opened sharply lower on Monday, amid growing investor anxiety following US President Donald Trump's threat to impose steep tariffs on several European countries if they obstruct his efforts to buy Greenland.
Risk aversion prevailed from the start of the session, leading to a decline in major European stock indices, amid fears of a return to the trade war scenario and its potential impact on global economic growth and international trade.
These moves came after Trump announced his intention to impose tariffs starting at 10% in early February , rising to 25% from June if no agreement is reached, targeting a number of allied European countries within NATO.
Investors are watching developments this week at the World Economic Forum in Davos, where Trump is expected to deliver a speech that could provide crucial signals about the future of US trade policy, coinciding with the release of inflation data in the Eurozone, which could in turn affect market movements.
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