European Stocks Hit by Trade Tensions Over Greenland

European shares experienced a decline on Friday, poised to end their five-week streak of gains. This downturn comes amidst fresh trade tensions over Greenland, causing investors to worry about future market stability.

The pan-European STOXX 600 index fell by 0.1% by mid-morning GMT, largely due to the potential fallout from U.S. President Donald Trump's recent tariff threats on European countries to push for purchasing Greenland. Although the threat was later rescinded, the uncertainty impacted market sentiment.

The travel and technology sectors were notably hit, with declines of up to 1.1%, while telecom and energy stocks provided slight relief by gaining 1.1%. Economic surveys across the euro zone indicate slow business activity, making investors cautious despite the temporary easing of trade worries.