Trade Tensions Rock European Markets

European shares fell, ending a streak of gains, due to trade tensions involving Greenland. The STOXX 600 index declined, impacted by potential tariffs proposed by U.S. President Trump. Investors remain cautious despite Trump's retraction. Economic indicators, especially PMI figures, remain in focus for economic forecasts.

European shares took a downturn on Friday, signaling the end of their longest streak of weekly gains since May. This has been attributed to escalating trade tensions involving Greenland, which has unnerved investors.

The STOXX 600, a benchmark index for European markets, slipped by 0.2% as of 0803 GMT and appears set to end a five-week winning streak, having already lost 1% this week. Market jitters were stirred by U.S. President Donald Trump's threats to impose tariffs on eight European countries unless the U.S. is permitted to purchase Greenland.

Although Trump has since rescinded these threats, citing an agreement involving Greenland and NATO, there remains a sense of apprehension over the use of tariffs as leverage. Meanwhile, crucial purchasing managers' index figures are anticipated in both Europe and the U.S., with investors keenly watching for potential impacts on economic momentum.

(With inputs from agencies.)