European Markets Slide at Open Amid Escalating Geopolitical Tensions

European equity markets opened lower on Thursday, with the STOXX 600 index dipping 0.7% at the close of the pre-market session, dragged down by growing unease over U.S. foreign policy shifts. The decline was broad-based, with the German DAX falling 0.9% and the French CAC 40 losing 0.8%. Investor appetite waned as U.S. President Donald Trump reiterated his intention to pursue the acquisition of Greenland, sparking concerns over strategic instability in the Arctic region. This statement, issued via social media, intensified scrutiny on transatlantic alliances and exposed vulnerabilities in long-term supply chain and defense planning. The volatility extended into commodity markets, with Brent crude oil rising 1.4% to $89.30 per barrel amid fears of disrupted shipping lanes and increased military activity in northern waters. Gold, seen as a safe-haven asset, climbed 0.9% to $2,045 per ounce, reflecting a flight to safety among institutional investors. European bond yields rose across the board, with Germany’s 10-year Bund yield increasing by 8 basis points to 2.12% as traders priced in higher risk premiums. Sector-specific data revealed that defense contractors and mining firms were among the hardest hit, with shares in Rheinmetall and Nordgold dropping 3.2% and 2.6%, respectively. Conversely, aerospace and infrastructure firms showed modest gains, suggesting some market participants are positioning for potential shifts in defense spending. Market watchers noted that the broader impact could extend beyond Europe, with Asian and U.S. equity futures also showing negative momentum.