FX.co ★ European Stocks Close Sharply Higher

European stocks experienced a significant rebound on Thursday, recovering from losses sustained over five consecutive sessions. This positive shift came in response to US President Trump's decision to retract plans for acquiring Greenland from Denmark and to suspend tariffs against key European economies that had been subject to US pressure. The recovery was further bolstered by a meeting with the NATO Secretary General; however, specific details of the discussed agreement remain undisclosed.

Previously, at the Davos meeting on Wednesday, President Trump had assured that he would not use force to take control of Greenland, influencing the European Parliament's decision to pause the approval of the EU–US trade deal settled in July as a form of protest against his prior threats.

The rally was notably propelled by strong performances in the banking sector, with prominent banks like Deutsche Bank, BNP Paribas, UniCredit, and Santander seeing increases ranging from 3% to 4%. Conversely, the defense sector did not fare as well, with companies such as Rheinmetall and Safran experiencing declines of over 3%.