Geopolitical Tensions Shake European Markets

European stocks ended lower for the week amid investor caution spurred by geopolitical issues, notably tensions with the U.S. regarding Greenland. The STOXX 600 index fell 1.1% despite a mid-week rebound. Investor sentiment was affected by potential tariffs, with certain European sectors outperforming due to selloffs elsewhere.

European shares ended the week lower as investors remained cautious, evaluating the potential trade tensions fueled by U.S. negotiations over Greenland. The pan-European STOXX 600 edged down by 0.1% to 608.34 points on Friday, ending its five-week winning streak—the longest since May.

The index dropped by 1.1% over the week, reflecting cautious investor behavior amid looming geopolitical uncertainties. The unease was triggered by U.S. President Donald Trump's suggestion of imposing escalating tariffs unless allowed to purchase Greenland, although these threats were later withdrawn.

Despite jitters, energy and mining stocks mitigated losses on the STOXX index by gaining 1.5%. However, the European insurance sector witnessed a 1.6% decrease due to a bond selloff. The week also saw fluctuations, including a rise in defense stocks and steep declines for companies like Adidas and Puma.

(With inputs from agencies.)