European Stocks Slip, Investors Grow Weary of Trump Drama
European stocks closed the week under the most pressure in two months, as geopolitical risks lingered and surging oil prices dragged down airline stocks. The Stoxx Europe 600 edged down 0.1% at the close of trading on Friday (January 23rd), but fell by about 1% weekly—its first decline after six consecutive weeks of gains.
The hardest hit came in the travel and leisure sector, followed by economically sensitive sectors such as banking, consumer goods, and construction. Telecommunications and mining, on the other hand, were more resilient, as the market began to sort out stocks considered safe amid the uncertainty.
Sentiment had wavered after President Donald Trump's threat of new tariffs linked to the Greenland issue. Although Trump later backed down and the market rebounded on Thursday, investors remained cautious—but this time the market reaction appeared more measured, as if market participants were getting used to the political noise.
In individual stocks, airlines were in the spotlight: Lufthansa fell 1.9%, Air France-KLM tumbled 3.2%, and IAG slumped 2.8%, as rising oil prices lifted the burden of fuel costs. Meanwhile, Ericsson surged 11% as cost-cutting and margin improvements began to show results.
Data-wise, the eurozone composite PMI showed the private sector continued to grow moderately in January, with a weak German economy helping cushion the impact of a weaker French economy. Meanwhile, there was also corporate drama: Wacker Neuson plunged 22% after acquisition talks with Doosan Bobcat were halted, and Adidas fell 5.7% after an analyst downgrade suggested its revenue growth could slow.
Source: Newsmaker.id
