European markets reach a new high following Trump’s remarks in Davos

European stock markets extended a multi-session winning streak following President Trump’s speech in Davos. While the banking sector led broad gains, energy stocks remained under pressure.

ADVERTISEMENT

European stock markets extended their gains on Thursday following US President Donald Trump’s speech at his first virtual appearance at the World Economic Forum in Davos, Switzerland. He demanded that global interest rates be reduced and urged OPEC to lower oil prices. He also called for deregulation of banking rules.

The Euro Stoxx 600 rose 0.46% to €530.50, extending a seven-session winning streak to a new record high. The DAX climbed 0.74%, marking its eighth consecutive session of gains after repeatedly hitting new highs over the past seven trading days. The French CAC 40 advanced 0.7% to its highest level since 11 June, and the FTSE 100 was up 0.23%, also closing at a record high.

Banking sector rallies

The European banking sector (SX7P) rose 1.83%, leading the gains in the Euro Stoxx 600. Major financial stocks saw strong performances, with HSBC shares up 0.77% to their highest level since 2000, UBS rising 0.38% to a 16-year high, UniCredit climbing 2.53%, and Banco Santander advancing 2.45%.

Trump encouraged investment in the US by promising lower taxes and looser regulations. During a question-and-answer session, he urged US banks, particularly targeting Bank of America and JPMorgan Chase, to stop blocking political accounts. Trump also criticised European regulators for being too tough on US tech companies and oil producers.

Trump’s presidency is expected to benefit the banking sector due to his stance on loosening regulations for large lenders. He may urge to reduce capital requirements—the minimum amount of capital a bank must hold as mandated by regulatory authorities—and relax administrative processes. Such measures would encourage major banks to increase returns to shareholders through share buybacks and dividends.

Energy stocks drop as crude prices fall

European energy stocks extended losses as oil and gas prices continued to decline, following President Trump’s call on Saudi Arabia and OPEC to reduce prices on Thursday.

Shell’s shares fell 0.48%, BP’s dropped 0.59%, and TotalEnergies slipped 0.43%. The three largest European oil and gas producers have seen their shares decline throughout the week, mirroring trends in the oil markets.

Crude oil futures fell for the fourth consecutive trading day since Trump’s inauguration. WTI futures declined 1.09% to $74.62 per barrel, while Brent futures slid 0.9% to $78.29 per barrel, both reaching a two-week low.

President Trump suggested that high oil prices were funding Russia in the Ukraine war. “I’m also going to ask Saudi Arabia and OPEC to bring down the cost of oil,” he said on Thursday at Davos. “If the price came down, the Russia-Ukraine war would end immediately.”

His remarks followed his pledge to pressure Russia with sanctions and tariffs to end the war. At the event, Trump reiterated his intention to increase US oil and gas production to support the manufacturing sector, particularly in developing artificial intelligence and cryptocurrency infrastructure. He again emphasised that the US has unfair trade relations with the EU. In December, Trump threatened to raise tariffs if the bloc did not increase its purchases of US gas and oil.

Technology shares mixed

European technology stocks showed mixed performance on Thursday as the artificial intelligence-led rally faded. Trump unveiled a joint venture with tech giants to invest €480 billion in AI infrastructure in the US on Tuesday, which had boosted sector share prices earlier in the week. However, he did not give further indications on the build of the US tech advancement during his speech on Thursday.

Europe’s largest tech company, SAP, saw its shares steady at an all-time high of €262 on Thursday. However, Dutch AI chip equipment manufacturer ASML saw its shares slump 4.4%, amid concerns over potential export restrictions to China. Dutch Prime Minister Dick Schoof indicated during an interview with Bloomberg in Davos on Wednesday that the Trump administration might impose AI chip trade controls on China as strictly as those under the Biden administration.

Bitcoin slides

Trump signed an executive order on cryptocurrency and artificial intelligence, creating a working group to advise the White House on digital asset policies. The action disappointed Bitcoin enthusiasts, as Trump did not specifically order the establishment of a Bitcoin reserve, as he had previously hinted.

Bitcoin prices fell from just above $107,000 to just above $102,000 following the executive order. The world’s largest digital token rebounded slightly to $103,370 at 3:22 am CET on Friday.

Source link

Visited 1 times, 1 visit(s) today

Related Article

Adecoagro Sets 2026 Dividend Plan As Cash Returns Face Key Tradeoffs

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Adecoagro (NYSE:AGRO) has approved a new cash dividend distribution to shareholders. The dividend will be paid in two installments scheduled for May and November 2026. The decision reflects a planned return of capital to investors

The Mistakes I Keep Seeing ETF Investors Make With “Set It and Forget It” Funds

For as much good as the ETF industry has done in offering hundreds of ultra-cheap investment products targeting almost every market, sector, and theme, they’re not perfect. We often hear the phrase “set it and forget it” when it comes to investing. I’ve used it several times myself. While that theory works at a high

Amkor (AMKR) Reports Earnings Tomorrow: What To Expect

Semiconductor packaging and testing company Amkor Technology (NASDAQ:AMKR) will be announcing earnings results this Monday after market hours. Here’s what to look for. Amkor beat analysts’ revenue expectations last quarter, reporting revenues of $1.89 billion, up 15.9% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates

Stock Market Outlook: 4 Signs AI Trade Could Soar 30% in Dot-Com-Style Rally

The stock market looks like it’s headed for a 1999 moment, BCA Research says. Loading audio narration… The investment research firm said it sees the potential for an AI-fueled “melt-up” in the stock market— a sharp rally in stocks that other forecasters have predicted could be followed by a brutal meltdown. BCA said that’s because

2 ETFs to Buy With $100 and Hold Forever

The stock market has already taken investors for a ride in 2026. After a relatively calm first two months of the year, the S&P 500 fell 9% only to turn around and bounce 12% higher off the lows. The uncertain direction of the Iran war, inflation, and economic growth has most people focused on what

This Ultimate AI Stock Has Gained 26% This Year and Still Isn’t Done

Nvidia (NVDA +4.30%) became the world’s most valuable company because it is a critical part of the AI build-out. Companies need Nvidia chips for computational power, but it turns out Nvidia needs another company to manufacture its chips. Taiwan Semiconductor Manufacturing Co. (TSM +5.08%) creates the chips that Nvidia designs. It’s not just Nvidia, either.

Software’s comeback bid is fading as chip stocks smash records: Chart of the Day

Software had a chance to take the baton — but chips grabbed it back. The iShares Expanded Tech-Software Sector ETF (IGV) is no longer breaking down. After sliding over 5% on Thursday — its worst day since the April 4 post-”Liberation Day” sell-off — it fought back to finish slightly positive on the week. Software

3 Market Trends That Could Shape the Rest of 2026

The past few years have featured pretty much just one dominant market theme: artificial intelligence (AI). Stock market winners, economic growth figures, and earnings expectations were all built around the AI development story. 2026 looks a little different. The AI narrative is still hanging around, but it’s more in the background now. The Iran war,

Why Beyond Meat Stock Surged This Week

Beyond Meat (BYND 8.07%) stock closed out this week’s trading with a gain of 6.1%. At one point across the stretch, the company’s share price had been up 25.6% from where it stood at the end of the previous week’s market close. Beyond Meat’s valuation moved higher in conjunction with bullish momentum for the broader

1 Small‑Cap Sports‑Data Stock That Could 5X as Prediction Markets Explode

Sometimes, companies and investors ought to be careful about what they wish for. Genius Sports (GENI +2.76%) and Sportradar (SRAD +3.02%) are arguably good examples of that sentiment. At their cores, Genius and Sportradar are sportsbook data providers. Still, over the years, some analysts have argued the shares should be treated more like SaaS stocks

Wall Street Says the Stock Market’s Return in 2026 Will Beat the 30-Year Average

Nearly 5,500 companies were listed across U.S. stock exchanges as of the first quarter of 2026, according to the Security Industry and Financial Markets Association (SIFMA). Of those companies, the 500 largest ones that are domiciled in the U.S. are included in the S&P 500 (^GSPC +0.80%), an index that is generally synonymous with the

2 Breakout Growth Stocks You Can Buy and Hold for the Next Decade

One of the best ways to find great growth stocks is to identify companies with accelerating revenue growth and the potential to deliver durable long-term growth. These are the type of breakout growth stocks that can turn into multibaggers in your portfolio. Right now, it is difficult to find these types of businesses trading at

The Federal Reserve’s Interest Rate Dilemma Is About to Go From Bad to Warsh — and the Stock Market May End Up Paying the Price

One of the greatest aspects of putting money to work on Wall Street is the disproportionate nature of investing cycles. While bear markets are normal, healthy, and inevitable, bull markets last substantially longer. It’s why the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) ascend to new highs

Want Safe Income While the Market Wobbles? Buy This Dividend Stock With $5,000.

Amid geopolitical turmoil and struggles with affordability, some investors may be looking to de-emphasize growth in favor of stable dividend stocks. This may make sense as such stocks tend to sell recession-resistant products, and the responsibility of maintaining a dividend tends to engender more conservative management. Such conditions describe the stock of TJX Companies (TJX

Will There Be a Stock Market Crash Under President Donald Trump? One Forecasting Tool With 155 Years of History in Its Sails Offers an Answer.

Since the late 1890s, the ageless Dow Jones Industrial Average (DJINDICES: ^DJI) or benchmark S&P 500 (SNPINDEX: ^GSPC) have risen in 26 of the last 33 presidential terms. But under President Donald Trump, annualized returns for the Dow, S&P 500, and growth-stock-driven Nasdaq Composite (NASDAQINDEX: ^IXIC) have been higher than most other presidents. During Trump’s

0
Would love your thoughts, please comment.x
()
x