European Stocks Slide at Open Despite Greenland Fallout

European shares opened sharply lower on Monday as investors reacted to renewed geopolitical and trade tensions linked to the Greenland dispute, overshadowing otherwise stable economic fundamentals across the region.

At the opening bell, the pan-European Stoxx Europe 600 index fell by more than one per cent, with losses spread across major markets. Germany’s DAX, France’s CAC 40, and Britain’s FTSE 100 all traded in the red, reflecting broad-based risk aversion. Sectors most exposed to international trade, including automobiles, luxury goods and industrials, led the decline. The sell-off followed fresh comments from US President Donald Trump, who warned of potential tariffs on imports from several European countries amid ongoing tensions over Greenland. According to market watchers, the remarks revived fears of a wider transatlantic trade dispute, prompting investors to trim exposure to equities at the start of the week. Although no immediate tariffs have been imposed, the prospect of levies in the coming months was enough to unsettle markets. Analysts noted that investors are particularly sensitive to policy uncertainty, especially when it involves trade relations between the United States and Europe. Markets are reacting more to the risk of escalation than to any concrete policy action so far,” one European market strategist said. “The Greenland issue has introduced a new layer of geopolitical uncertainty at a time when investors were hoping for stability. Beyond equities, the cautious mood pushed investors toward safe-haven assets, with precious metals such as gold gaining, while global equity futures also weakened, indicating that the impact was not limited to Europe alone. Despite the weak open, economists stressed that the decline was not driven by deteriorating corporate earnings or macroeconomic data. Instead, it reflects concerns that renewed trade tensions could weigh on growth, disrupt supply chains, and pressure export-dependent European companies if rhetoric turns into action. European policymakers have so far played down the likelihood of an immediate trade confrontation, but markets remain on edge as they await further signals from Washington and Brussels. For now, investors are bracing for continued volatility as geopolitical developments, rather than economic fundamentals, take centre stage.