European stocks traded in a mixed pattern on Wednesday, with investors staying cautious ahead of U.S. President Donald Trump’s highly anticipated address at the World Economic Forum in Davos later in the day.
At 08:05 GMT, Germany’s DAX slipped 0.3%, France’s CAC 40 was largely unchanged, while the U.K.’s FTSE 100 edged up 0.1%.
Market sentiment has been fragile this week after Trump threatened escalating tariffs on several European allies unless the United States is allowed to purchase Greenland, the autonomous Danish territory. Late Tuesday, the U.S. president reiterated that acquiring the island is “necessary,” reinforcing fears of a deepening rift between Washington and its European partners.
As Trump heads to Davos, investors expect him to use the global मंच to intensify his campaign over Greenland — a move that could further strain transatlantic relations.
Earlier on Wednesday, European Central Bank President Christine Lagarde warned that Europe must undertake a “deep review” to confront what she described as “the dawn of a new international order.” Lagarde said U.S. tariffs would likely have only a modest inflationary impact overall, though Germany could be hit harder than France. She added that Europe would emerge stronger if it dismantled non-tariff barriers within the bloc.
U.K. Inflation Climbs
Economic data also shaped sentiment. U.K. consumer prices rose more than expected in December, with annual inflation accelerating to 3.4% from 3.2% in November, above forecasts of 3.3%. Inflation in Britain remains the highest among G7 nations, despite weak economic growth.
However, economists expect price pressures to ease in coming months as last year’s increases in energy bills and regulated prices drop out of annual comparisons.
Corporate Highlights
In the corporate arena, Burberry outperformed expectations during the crucial holiday quarter and guided for full-year profit in line with forecasts. The luxury brand said its renewed focus on British heritage and improving demand from China were paying off.
Premier Foods posted strong third-quarter results, with branded revenue rising 5.2% after better-than-expected Christmas trading.
Atos reported preliminary 2025 revenue of €8 billion, meeting its target, while also noting lower-than-expected cash outflows. Barry Callebaut, however, saw first-quarter sales volumes fall nearly 10% and announced that Hein Schumacher will take over as CEO later this month.
Inpost reported a 25% jump in full-year parcel volumes, driven by international expansion and a surge in U.K. deliveries, handling a record 1.4 billion parcels.
Across the Atlantic, Netflix remained in focus after beating fourth-quarter revenue and earnings expectations. The streaming giant said it will pause share buybacks to preserve cash as competition intensifies in a high-stakes bidding battle for Warner Bros Discovery.
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