LONDON – European markets ended in negative territory on Friday as investors digested the events at Davos, including Ukrainian President Volodymyr Zelensky’s scathing speech on the continent.
The pan-European Stoxx 600 index closed 0.2% lower, with major exchanges mixed.
European stocks ended higher on Thursday after US President Donald Trump said he had reached a “framework” agreement on Greenland and stopped imposing additional tariffs on European countries.
News of the framework comes as U.S. business leaders welcomed Europe’s tough stance against Trump, sparking intense speculation that retaliatory tariffs could be imposed. “It’s very good for business,” said JPMorgan EMEA co-CEO Conor Hillary.
However, in his speech at the WEF in Davos, Zelensky criticized European leaders’ response to geopolitical threats. He accused Trump of having “lost” Europe, despite trying to convince him to “change” and support Europe rather than uniting to protect his country.
President Zelensky also said that trilateral talks between Ukraine, Russia and the United States will be held in the United Arab Emirates on Friday and Saturday over ending the war in his country.
Investors are now paying close attention to the members of the Peace Commission chaired by President Trump. The commission was originally created to oversee the demilitarization and reconstruction of Gaza. However, President Trump has expressed the view that the council has a role comparable to that of the United Nations, which has alarmed several US allies. President Trump overnight rescinded an invitation from Canadian Prime Minister Mark Carney to participate.
Trump also said the United States has an “armada” heading toward Iran amid a brutal government crackdown on protesters in the oil-producing nation.
“There are a lot of ships headed in that direction. Just to be safe…it’s better if nothing happens, but we’re keeping a close eye on it,” Trump told reporters aboard Air Force One.
Benchmark Brent crude oil March futures It rose 2.9% on Friday. European oil and gas stocks ended the day up 1.3%.
Meanwhile, shares in defense company Czechoslovakia Group (CSG) soared on its public debut in Amsterdam, closing 31.4% higher.
Ericsson said in a filing that it plans a 15 billion Swedish kronor ($1.7 billion) share buyback plan.
The Swedish telecoms giant reported adjusted profit before interest and tax of 12.26 billion kronor for the final quarter of 2025, higher than expected 10.09 billion kronor, according to Infront research cited by Reuters.
The company’s Stockholm-listed shares soared, rising about 11% to the highest since November. The stock pared some gains to close 10.5% higher.
President and CEO Börje Ekholm said in a statement that he expects wireless access networks to level off in 2026.
“The mission-critical and enterprise markets, where we are well-positioned, are expected to grow. In this environment, we plan to increase our investments in defense during 2026, while continuing to optimize our cost base to support profit and cash flow generation,” he added.
Ubisoft The company’s stock price fell 34% on Thursday after it announced a major restructuring and the cancellation of six games. The Assassin’s Creed maker said it expects to incur an operating loss of about 1 billion euros ($1.17 billion) in the fiscal year ending 2026 after a 650 million euro writedown due to restructuring and is considering selling some assets. Ubisoft’s Paris-listed shares closed 2.6% higher on Friday.
Elsewhere, business activity in Germany expanded in services and manufacturing in January, according to data released by S&P Global and Hamburg Commercial Bank (HCOB).
The HCOB Purchasing Managers’ Index (PMI) in January was 52.5, up from 51.3 in December and also above Reuters’ forecast of 51.6, the highest level in three months. The growth was driven by the services PMI at 53.3, which exceeded the expected 52.5, and the manufacturing sector also exceeded expectations at 48.7.
Market participants will also be watching for an impending Supreme Court ruling regarding President Trump’s attempt to fire Federal Reserve President Lisa Cook, which will put the independence of the Federal Reserve back into focus. Mr Cook appears to be OK after this week’s altercation.
Asia-Pacific markets rose on Friday, tracking Wall Street’s gains from the previous session as geopolitical concerns eased and investors appreciated the Bank of Japan’s decision to keep interest rates on hold. US stocks were mixed. S&P500 Last up 0.2%. Nasdaq rose 0.6%, Dow Jones Industrial Average The stock fell 0.5%.
—CNBC’s Lucy Handley contributed to this report.
