Trump's Greenland U-Turn Revitalizes European Shares

European shares rebounded after President Trump withdrew tariff threats related to Greenland, boosting investor confidence. STOXX 600 gained 1.2%, recovering from previous losses. Despite easing volatility, analysts warn of ongoing market unpredictability due to Trump's foreign policy and urge caution against investor complacency.

European shares experienced a rebound on Thursday as President Donald Trump decided against imposing tariffs on Greenland, following a promising dialogue with NATO Secretary General Mark Rutte addressing the territory's future.

The pan-European STOXX 600 index climbed 1.2%, recovering from a trading week marked by the return of trade war tensions that had previously slashed the index by 1.9%.

While the reduction in volatility provided a temporary relief, market analysts remain cautious, warning that investor complacency in a landscape of erratic foreign policy could pose future risks. Companies' financial reports are also under scrutiny for profit and demand insights.

(With inputs from agencies.)