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

What Is One of the Best Dividend Stocks to Buy With $5,000 Right Now?

When it comes to investing in the stock market, it’s not always about trying to achieve the highest levels of capital growth in your portfolio. Some people have the simple objective of owning companies that provide them with a nice income stream. Along those lines, here’s one of the best dividend stocks to buy with

AI Stocks Just Did Something That’s Been Witnessed Only 4 Times in 62 Years — Is It Finally Time to Sound the Alarm?

Roughly three decades ago, the mainstream proliferation of the internet changed America forever. After a long wait, the next game-changing technology has arrived: artificial intelligence (AI). Empowering software and systems with the tools to make split-second, autonomous decisions is a greater than $15 trillion global opportunity by 2030, according to PwC analysts. The rise of

Iran Conflict Threatens Lucrative Luxury Stock — Time to Panic, or Time to Buy?

Despite a fragile ceasefire currently, there’s still potential trouble brewing from the conflict in Iran. Mainstream automakers such as Ford Motor Company (F 0.90%) and General Motors (GM 0.40%) don’t do big business in the Middle East and remain relatively unimpacted by the current Iran conflict. It’s a different scenario for high-flying luxury stocks such

1 No-Brainer Dividend Stock to Buy if the Market Falls Again

We’ve certainly seen a handful of solidly bullish days of late. Broadly speaking, though, the market’s still at risk of a full-blown correction. At the very least, investors would be wise to remain defensively minded. To this end, there’s one particular dividend stock that will not only become more attractive on any marketwide pullback, but

The Likelihood of a Stock Market Crash Taking Shape Under President Donald Trump Is Rising — and There’s a Clear Reason Why

From a purely statistical standpoint, investors have prospered under President Donald Trump. During his first, non-consecutive term (Jan. 20, 2017 – Jan. 20, 2021), the widely followed Dow Jones Industrial Average (^DJI 0.56%), benchmark S&P 500 (^GSPC 0.11%), and growth-stock-inspired Nasdaq Composite (^IXIC +0.35%) gained 57%, 70%, and 142%, respectively. The first year of Trump’s

The Q1 earnings season in China’s A-share market is in full swing, with 11 listed companies forecasting a maximum year-on-year net profit increase of over 500%.

①The day after the release of their Q1 earnings forecast, Namicro Technology, Shannon Core Creation, Dongyue Silicon Materials, Deyi Co., Ltd., Fuchun Dyestuff & Weaving, Qiuyuan Power, and Dongshan Precision all closed with涨停 (limit-up). ②A summary of A-share listed companies expecting a year-on-year net profit increase of over 500% in Q1, along with reasons for

Could Investing $10,000 in SCHB Make You a Millionaire?

Recent stock market volatility and worries about an artificial intelligence (AI) bubble are driving many investors to diversify. If you want an easy, low-cost way to own a broadly diversified portfolio of stocks, the Schwab U.S. Broad Market ETF (NYSEMKT: SCHB) could be a solid choice. This low-cost index fund charges a rock-bottom expense ratio

Trump Promised Cheap Beef — The Cattle Trade Crushed The S&P 500 For Years

President Donald Trump promised to slash beef prices on day one of his election. Eighteen months later, cattle and retail beef prices have reached record highs. At $6.74 per pound, the current price of beef is about 18% higher than it was during President Joe Biden‘s last year in office. cattle and beef prices have

This Vanguard Index Fund Is Absolutely Crushing the S&P 500 This Year

The S&P 500 (SNPINDEX: ^GSPC) has fallen 1% year to date, dragged lower by particularly large losses in the financials, consumer discretionary, and technology sectors. However, the energy sector has added 30% in 2026 as the Iran conflict has pushed oil prices to a multiyear high. Consequently, the Vanguard Energy ETF (NYSEMKT: VDE) has crushed

Earnings Season Is Set to Be a Blockbuster, Investors Aren’t Prepared: DB

First-quarter earnings season is set to kick off next week, and Deutsche Bank says it’ll be a doozy. Loading audio narration… The bank is eyeing 19% year-over-year earnings growth — above the Wall Street consensus of 16%, which is already the most bullish level in four years. In a client note on Thursday, the bank

Boom or Bubble? Here’s Where Micron Stock Could Be in 5 Years.

The debate over Micron Technology‘s (NASDAQ: MU) future gets incorrectly framed all of the time. Bulls point to artificial intelligence (AI) model scale and data center buildouts. Meanwhile, bears remain skeptical of the cyclical nature of memory chips and warn of inventory gluts. I think both camps are indexing too heavily on yesterday’s demand curve.

A Healthcare Stock With a 6%-Plus Yield: Is the Dividend Safe?

Although high dividend yields are attractive to income seekers, they can sometimes signal that the dividend is unsustainable and a payout cut is on the way. Is that where we are headed with Pfizer (NYSE: PFE)? The healthcare giant’s poor stock market performance over the past few years has pushed its forward yield to a

Tesla Stock Big Short Opportunity, Stock Could Fall to $25, Analyst Says

Tesla stock is down 25% in 2026, and one market strategist thinks there’s more pain ahead through year-end. Loading audio narration… Gordon Johnson, the founder and CEO of market research firm GLJ Research, recommended “aggressively” shorting the EV maker’s stock last year, and he maintains that view in 2026. Johnson spoke to Business Insider about

Why Market Indexes Aren’t Panicking Today

Wall Street ended this volatile week on a quiet note. As of 2 p.m. ET, the leading market indexes remained well within 1% of Thursday’s closing scores. The Dow Jones Industrial Average (DJINDICES: ^DJI) made the biggest move, sliding 0.5% lower. The Nasdaq Composite (NASDAQINDEX: ^IXIC) shows a 0.3% gain right now, down from a

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