European stocks head for loss after Trump’s Greenland threats

European shares fell on Friday, set to end their longest run of weekly gains since May, as investors weighed the potential fallout from renewed trade tensions linked to Greenland.

The pan-European STOXX 600 edged 0.2 per cent lower by 0803 GMT, poised to snap a five-week winning streak.

The benchmark index has lost 1 per cent this week. Markets were jolted by US President Donald Trump's threats to impose tariffs on eight European countries until Washington was allowed to buy Greenland.

Trump rescinded his tariff threats on Wednesday and said that he had secured total and permanent US access to Greenland through a deal with NATO.

European Union leaders were ready to revive an EU-US trade deal, while warning they would respond if Trump renewed his threats.

While Mr Trump has since dropped the threat, investors remain wary of tariffs being used as a bargaining chip.

Elsewhere, purchasing managers' index figures are due in Europe and the US, with investors watching the surveys for fresh clues on economic momentum.

"They are likely to confirm the ongoing resilience of the euro zone's gradual recovery despite geopolitical headwinds," economists at ING wrote in a note.

Among individual movers, BASF dropped 2 per cent after preliminary figures showed the German chemical giant's profit fell in 2025 due to lower margins and negative currency effects.

French lender BNP Paribas BNPP.PA was down 0.7 per cent. The bank plans to cut around 1,200 jobs at its asset management unit by the end of 2027, Reuters reported on Thursday.

Meanwhile emerging market equities and currencies extended gains on Friday, with some geopolitical jitters subsiding after U.S. President Donald Trump softened his rhetoric towards Europe over Greenland.

The MSCI's gauge of emerging equities .MSCIEF rose 0.3 per cent to notch a fresh all-time high and was set for a fifth week of gains, while the corresponding currencies index .MIEM00000CUS climbed 0.2 per cent.

Both indexes were poised for weekly gains after stalling earlier this week due to Trump's tariff threats against European allies over his push to control Greenland, which sent investors fleeing from risk assets.