The American president has announced that he will impose additional tariffs of 10% starting February 1 on goods coming from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and the United Kingdom. This rate will rise to 25% on June 1 if no agreement is reached regarding Greenland, a territory coveted by the United States.

The response from these eight European countries affected by the new tariffs was swift. In a joint statement, they expressed solidarity with Greenland and denounced the new threats from the American president. "Tariff threats undermine transatlantic relations and constitute a dangerous downward spiral," these European nations stated.

On this subject, Christopher Dembik, investment strategy advisor at Pictet AM, expects that "the Europeans may threaten to withdraw from the EU-USA trade agreement, whose ratification was already on shaky ground before this weekend's events in the European Parliament. Furthermore, the Supreme Court could issue an opinion as early as tomorrow on the tariffs announced by the Trump administration last April. All of this creates a perfect cocktail for renewed market volatility at the start of the week. It is likely that corporate earnings will take a back seat for now."

Following the announcement of these tariffs, shares in the luxury, automotive, wine/spirits, and banking sectors have stumbled. LVMH recorded the sharpest drop on the CAC 40, losing nearly 5%. Additionally, the sector giant was penalized by a Morgan Stanley note. The American bank downgraded its rating on LVMH from Overweight to Equal Weight, with its price target unchanged at 635 euros. "The group is considered to be in a better position than a year ago. Its two flagship brands, Louis Vuitton and Dior, are regaining positive momentum, which should translate into fourth-quarter 2025 results above consensus expectations. Despite this recovery, we see more downside than upside risk to 2026 earnings per share (EPS) estimates," the analyst explained.

Conversely, amid the tensions over Greenland, defense stocks have surged. Thales leads the CAC 40, up 2.41%, and Dassault Aviation posted the biggest gain on the SBF 120 with an increase of over 3.5%.

In Europe, Ageas advanced nearly 3% in Brussels after an upward revision of its 2025 net operating profit forecast, linked to a one-off positive impact on deferred taxes included in the 2025 annual result of its Chinese joint venture, Taiping Life.

On the statistics front, investors will be watching for eurozone inflation figures for December at 11 AM.

On the commodities market, gold prices reached a new record at 4,690.59 USD per ounce, while silver prices surpassed 94 USD for the first time.

This week will be marked by the release of annual earnings reports on both sides of the Atlantic, with results expected from Netflix, Intel, LVMH, and Ericsson, among others.