ISTANBUL
European stock markets ended the first trading day of the week lower amid rising geopolitical risks from the US-European Greenland dispute.
The pan-European Stoxx Europe 600 index fell 1.19%, or 7.32 points, to close Monday at 607.06.
Germany's DAX 40 was down 1.34% to 24,959.06 points, while the UK's FTSE 100 index lost 0.39% to reach 10,195.35.
France's CAC 40 index dropped 1.78% to 8,112.02 points and Italy’s FTSE MIB 30 fell 1.32% to 45,195.89.
US President Donald Trump announced over the weekend that tariffs would be imposed on eight European countries for opposing the US purchase of Greenland, arguing that the dispute threatens world peace.
Trump said a 10% tariff would be applied to goods imported from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland starting Feb. 1, rising to 25% on June 1.
Trump's statements raised geopolitical risks, putting pressure on stock markets.
European car manufacturers and the luxury goods sector reacted negatively to the announcement. The Stoxx Europe 600's Automotive and Parts Index fell by more than 2%.
In contrast, shares of most European defense companies rose.
Olof Gill, a spokesperson for the EU Commission, said they are prepared to retaliate if the US imposes additional tariffs on European countries supporting Greenland, and that the EU will do everything necessary to protect its economic interests.
Furthermore, reports emerged that EU countries are preparing to retaliate against Trump's decision to impose additional tariffs, including tariffs totaling €93 billion.
On the data side, according to data released today, annual inflation in the eurozone fell from 2.1% in November to 1.9% in December. Monthly inflation in December was 0.2%.
The euro/dollar parity was at 1.1644, up 0.38% as of 1900GMT.