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

Weekly Forex Forecast – 23th to 27th March 2026 (Charts)

I wrote on 15th March that the best trades for the week would be: Long of the USD/JPY currency pair. This gave a loss of 0.31%. Long of Wheat. This gave a loss of 1.27%. Last week’s overall loss of 1.58% is 0.79% per asset. A summary of last week’s most important data in the

2 Tech Stocks That Could Help Make You a Fortune

Building wealth in the stock market is fairly simple if you maintain a long-term mindset and focus on stocks of competitively positioned businesses. Investing in innovative companies with substantial growth potential is key. Historically, the tech sector has been an excellent place to find such businesses. The Trade Desk (TTD +2.47%) and Axon Enterprise (AXON

3 Steps Investors Should Take Now

Warren Buffett has always been optimistic by nature. When he takes a negative stance on something, it warrants special attention. Over 24 years ago, Buffett worked with Fortune magazine’s Carol Loomis on an article that was an eye-opener for some. In the article, he discussed a valuation metric that eventually was named after him —

The Federal Reserve Is Raising Red Flags, and the Stock Market Isn’t Listening

As was widely expected, the Federal Reserve’s Open Market Committee (FOMC) held the Fed Funds Rate steady last week at a target of between 3.5% and 3.75%. Although conceding that “economic activity has been expanding at a solid pace,” the FOMC also notes that “inflation remains somewhat elevated.” It’s not particularly remarkable language. In fact,

What to watch this week

US equities ended the week in the red once again as the war in Iran and the subsequent wracking of the global energy economy have only escalated. The 2026 gains have disappeared, and all three major US equity indexes are now squarely in the red on the year. The Dow (^DJI) shed about 1.0%, or

Is This Stock a Buy on the Dip?

After becoming the first healthcare stock to hit a $1 trillion market valuation in late 2025, Eli Lilly (LLY 1.29%) hasn’t performed well since, with its shares down about 19% from their 52-week high of $1133.95. Some are worried about the company’s runaway valuation, while others fear that, even as the drugmaker leads the market

The Pentagon Just Dropped a Bombshell for Palantir Stock Investors

Palantir Technologies (NASDAQ: PLTR) has been one of the most controversial stocks of the past few years. The company developed data mining infused with Palantir’s proprietary artificial intelligence (AI)-infused decision-making matrix — called ontology — to provide governments and businesses with real-time solutions to everyday issues. This differentiates Palantir’s products from would-be rivals. The company

What Happens to Your Investments If the Stock Market Crashes?

More than half of U.S. investors feel pessimistic about the market’s future, according to the most recent weekly survey from the American Association of Individual Investors, published on March 18, 2026. That figure is an increase from 46% last week and just 35% two weeks ago. With Americans feeling increasingly concerned about potential volatility, it’s

Hong Kong Stock Market Midday Review

COSCO Shipping Energy (01138) surged over 5% again, with VLCC freight rates remaining at extremely high levels. Analysts suggest monitoring the traffic conditions of the strait. According to Zhitong Finance, the Hang Seng Index fell by 0.17%, or 43 points, to 25,824 points, while the Hang Seng Tech Index dropped by 0.81%. The morning trading

Why Shares of Super Micro Computer Stock Collapsed This Week

Shares of Super Micro Computer (SMCI 33.18%) collapsed 28.1% this week, according to data from S&P Global Market Intelligence. The data center component assembler is caught in the middle of an illegal scheme to export computer chips to China, with its co-founder at the center of the story. As of 12:50 PM EST on Friday,

$1,000 in the VTI ETF Could Turn Into $1.39 Million. Here’s the Math.

One of the most important lessons of investing is to spread the wealth around. While it’s fun to choose individual winners like Nvidia or Palantir Technologies and see your nest egg climb, it’s even more important to create a diversified portfolio so you can spread your investments across sectors and geographies, helping you reduce your

Oil Shock: What History Says About the Stock Market and Rising Energy Prices

We’re now three weeks into the war in Iran, and the signs for the global economy continue to look worse. In the last few days, Israel and Iran have traded on key energy infrastructure, causing another spike in oil and natural gas prices. As of March 20, Brent crude oil, the global benchmark, was trading

3 Bargain Stocks the Market Is Mispricing After the Recent Sell-Off

With the market off its highs, some nice stocks in the tech sector currently look mispriced. Let’s look at three attractively valued artificial intelligence (AI) stocks to buy right now. Trading at a forward price-to-earnings (P/E) ratio of just 22 times this year’s fiscal year’s analyst estimates, and 17 times next year’s consensus, Nvidia (NASDAQ:

Could a stock market correction be good news for passive income?

Image source: Getty Images Passive income can look especially appealing when a stock market correction puts investors on edge. After all, watching the value of a share portfolio fall is never easy. But for long-term investors, weaker markets can create a rare chance to pick up solid businesses at lower valuations, and potentially lock in

Everyone’s panicking about a stock market crash! Here’s what I’ll do if it happens

Image source: Getty Images With the war in Iran ongoing, previous fears of a potential stock market crash have been sent into overdrive. And now the list of potential crash-triggering catalysts is becoming quite long. Some of the biggest concerns include: Further escalation of military conflict around the globe. Global energy market shock due to

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