Europe midday: Stoxx slides below 600 on Trump tariff worries

(Sharecast News) - European shares fell sharply on Tuesday with the benchmark Stoxx 600 index slipping below 600 as US President Donald Trump's bellicose language over his plan to annex Greenland and impose bigger tariffs on countries that oppose him continued to spook investors.

The pan-regional Stoxx extended losses to be 1.35% lower at 598 at 1155 GMT. Germany's DAX was down 1.72%, the UK's FTSE 100 fell 1.09% and France's CAC 40 declined 1.36%.

Trump, who is headed to the World Economic Forum in Davos, Switzerland repeated his assertion that the US "had to have" the semi-autonomous Danish protectorate.

"You know because a boat went there 500 years ago and then left that doesn't give you title to property," Trump told reporters overnight, referring to the island coming under Danish influence in 1380.

He said he would impose an additional 10% tariff starting February 1 on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Britain, rising to 25% on June 1 if no deal was agreed.

In response the European Union was mulling economic counter measures, including cutting US access to the bloc's single market.

"What happens next for financial markets will ultimately depend on President Trump's actions in the coming days. Greenland continues to be the focus for investors. The president posted a picture of himself holding a US flag on Greenland, suggesting that the territory will be owned by the US this year," said XTB research director Kathleen Brooks.

"However, he also said that he will hold a Greenland meeting at Davos, after a good conversation with the Nato secretary general and former Dutch PM, Mark Rutte. For now, Trump is sticking to his guns and said that there is 'no going back' on his Greenland pledge. Thus, the meeting in Davos later this week will be critical."

In equity news, money transfer fintech Wise jumped more than 12% after reporting a 21% rise in third quarter underlying income.

Shares in Mo�t & Chandon, Dom P�rignon and Veuve Clicquot owner LVMH and Telmont champagne parent Remy Cointreau both fell after Trump threatened to slap 200% tariffs on French wine and champagne in response to France's President Emmanuel Macron reported unwillingness to join his Gaza "Board of Peace".

BKW tanked after the Swiss energy group said it will take a 110m Swiss francs hit to operating profit from a write-down on its stake in the Wilhelmshaven coal-fired power plant in Germany.

Reporting by Frank Prenesti for Sharecast.com