European Stocks Soar as Greenland Talks Take Center Stage; BP Flags $5 Billion Q4 Charge

European stocks surged to record levels on Wednesday as investors shifted their focus to high-stakes talks over Greenland’s future. The pan-European Stoxx 600 rose 0.3% shortly after the opening bell, marking a new record as most sectors and major bourses moved higher. France’s CAC 40 climbed 0.51%, Italy’s FTSE MIB rose 0.47%, and London’s FTSE 100 added 0.25%, reflecting broad-based optimism in European markets.

The spotlight is on a crucial meeting in Greenland, where U.S. Secretary of State Marco Rubio is scheduled to meet with Greenlandic and Danish officials. The discussions are expected to address President Donald Trump’s repeated suggestions of acquiring the semi-autonomous Danish territory, which both Denmark and Greenland have firmly rejected. Despite Trump’s remarks about potential military options, Greenland’s government reiterated its commitment to Denmark, highlighting ongoing geopolitical tension in the Arctic.

Corporate news also weighed on the market. Oil giant BP announced it expects impairment charges between $4 billion and $5 billion for the fourth quarter of 2025, linked to its gas and low-carbon energy units. The company warned that its oil trading results would also be weaker than the previous quarter, causing BP shares to dip 0.8% in London trade. Meanwhile, mining giant Fresnillo hit a record high after spot silver topped $90 an ounce, before slightly retreating to trade 0.6% higher by mid-morning.

Defense stocks were mixed amid rising geopolitical uncertainty. European ammunition maker Czechoslovak Group announced plans to list in Amsterdam with a potential valuation of €30 billion, attracting early commitments from major investment funds. However, the broader Stoxx Europe Aerospace and Defense index fell 0.1%, impacted by tensions surrounding Greenland, violent protests in Iran, and recent U.S. interventions in Venezuela.

In global markets, Japanese indices reached record highs as investors speculated on a possible snap election called by Prime Minister Sanae Takaichi. U.S. stock futures were relatively flat after the S&P 500 pulled back from record levels earlier this week. With no major European earnings or economic data scheduled for Wednesday, market attention is likely to remain on geopolitical developments in Greenland and broader international trends.

source: cnbc