Markets Plunge Amid Trump's Greenland Tariff Threat

European markets saw significant declines, hitting two-week lows, after President Trump threatened tariffs on eight European nations unless the U.S. is allowed to purchase Greenland. The announcement contributed to fears of a new trade war, amplifying tensions as the World Economic Forum convenes in Davos.

European shares fell sharply on Tuesday, reaching their lowest in nearly two weeks. The downturn came as concerns over President Donald Trump's tariff threat on Greenland dampened optimism across the markets, which had been rising earlier this month.

The STOXX 600 index dropped 1.3%, France's CAC 40 declined 1.2% to a one-month low, and Germany's DAX slipped 1.4%. Trump's threat to impose escalating tariffs on eight European countries unless the U.S. is allowed to buy Greenland has sparked fears of renewed trade tensions.

As the World Economic Forum assembles in Davos, investors remain cautious. Corporate earnings data, especially from European firms, will further influence market sentiment. Meanwhile, the U.S. Supreme Court is set to deliver judgments on several critical cases, including one addressing the legality of Trump's tariffs.