European Markets Dip Amid Davos Tensions; Ericsson Shares Surge 11% After Q4 Beat
European markets slipped slightly on Friday, with the pan-European Stoxx 600 down 0.14% by mid-morning in London. Investors reacted to Ukrainian President Volodymyr Zelenskyy’s stern message at the World Economic Forum in Davos, where he criticized European leaders for being “lost” in their approach to geopolitical threats. While some major indices like the FTSE 100 and DAX saw modest gains, others, including the CAC 40 and IBEX 35, closed lower.
Markets had ended higher on Thursday following U.S. President Donald Trump’s announcement of a “framework” agreement over Greenland and his decision to avoid escalating tariffs on certain European nations. Business leaders welcomed the news, citing improved transatlantic trade relations. JP Morgan EMEA co-CEO Conor Hillery described the development as “very good for business,” signaling a temporary boost in investor confidence.
Zelenskyy also highlighted ongoing diplomatic efforts, revealing planned trilateral meetings between Ukraine, Russia, and the U.S. in the UAE aimed at ending the war. Meanwhile, Trump announced a U.S. naval presence near Iran amid a violent crackdown on protesters, keeping geopolitical risks at the forefront for traders. Brent crude oil futures rose 0.94%, with energy-related stocks climbing nearly 1% in early European trading.
On the corporate front, Ericsson made headlines with a 12.26 billion krona adjusted earnings beat and a planned 15 billion krona ($1.7 billion) share buyback, sending its shares up 11% at the open. CEO Börje Ekholm signaled growth in defense and enterprise markets while optimizing costs for margin stability. In contrast, Ubisoft shares plunged nearly 34% on Thursday due to major restructuring and game cancellations, though they partially recovered on Friday, trading up 3.7%.
European investors will also track U.S. political developments, including the Supreme Court case concerning Federal Reserve Governor Lisa Cook, which could impact the central bank’s independence. Meanwhile, Asia-Pacific markets gained on Friday, reflecting Wall Street’s back-to-back gains and easing geopolitical concerns. Futures tied to the S&P 500 traded higher, setting the stage for another volatile week in global markets.
source: cnbc