European markets fell on Tuesday, with U.S. stocks also poised to open lower, as investors reacted to rising tensions between President Donald Trump and European leaders over Greenland and new tariff threats.
Europe’s Stoxx 600 index dropped about 1%, extending losses from Monday and marking its weakest performance in months. Danish stocks were also under pressure, reflecting investor unease in Copenhagen after Trump included Denmark among countries facing a proposed 10% U.S. tariff. The move followed Trump’s renewed demand that the United States should acquire Greenland, a Danish territory.
U.S. stock futures pointed sharply lower ahead of the opening bell, as traders returned from the long weekend to digest the developments. Bond markets signaled caution as well, with Treasury yields rising amid selling, while investors reassessed the outlook for global trade and growth.
Market analysts warned that the dispute adds another layer of uncertainty to an already fragile environment. Concerns are growing not only about potential tariffs but also about how Europe might respond, including the possible use of tougher trade measures aimed at U.S. companies operating in the region.
Despite the sell-off, some strategists noted that market moves remain relatively contained compared with earlier tariff-driven shocks. Investors are also watching closely for legal developments in the United States that could limit the president’s authority to impose tariffs under emergency powers.
As risk sentiment weakened, demand for safe-haven assets increased, pushing gold and silver prices sharply higher. Overall, markets remain on edge, bracing for further headlines as transatlantic trade tensions continue to evolve.
