European Markets Set for Higher Open as Greenland Tensions and Iran Developments Shape Investor Sentiment
European markets are expected to open broadly higher on Thursday as investors weigh escalating geopolitical developments alongside corporate earnings and fresh economic data. Market sentiment has been shaped by renewed global tensions early in 2026, even as futures point to modest gains across major European indices.
According to data from IG, the U.K.’s FTSE 100 is projected to open 0.6% higher, while Germany’s DAX is seen up 0.18%. France’s CAC 40 is expected to rise 0.2%, and Italy’s FTSE MIB is forecast to gain 0.34%, reflecting cautious optimism among regional traders.
Investors are closely watching diplomatic fallout from a high-level meeting involving officials from the United States, Denmark, and Greenland. The talks, held at the White House on Wednesday, ended in what Danish officials described as a “fundamental disagreement” over the future ownership of the Arctic island. U.S. President Donald Trump has repeatedly argued that Greenland is strategically vital to U.S. national security and has warned that force remains an option if negotiations fail.
Geopolitical concerns have also centered on Iran after President Trump threatened military action if Iranian authorities proceeded with executions linked to recent protests. However, markets reacted to signs of de-escalation after Trump said executions had been halted and Iran reopened its airspace early Thursday, following a temporary shutdown that disrupted flights.
On the corporate front, Richemont delivered earnings ahead of the European open, reporting a 4% year-on-year rise in third-quarter sales to 6.4 billion euros, with stronger growth when adjusted for currency effects. Investors will also be digesting key economic data later in the day, including U.K. GDP figures for November, inflation data from France and Spain, and the European Union’s trade balance — all of which could influence market direction heading into the end of the week.
source: cnbc