European Stock Markets Decline: Geopolitical Risks and Inflation on the Agenda

European Stock Markets in the Red

As of 11:40, major stock indices in European markets continue to trade in the red. The Stoxx Europe 600 benchmark index is trading at 613.8 points, down by %0.1, while the FTSE 100 index in the UK has declined %0.2 to 10,218 points. The DAX 40 index in Germany is down %0.2, trading at 25,328 points, and the CAC 40 index in France has dropped %0.3 to 8,291 points.

Decline in Italian and Spanish Indices

Similarly, the FTSE MIB 30 index in Italy is at 45,762 points, down %0.2, while the IBEX 35 index in Spain is trading at 17,623 points, down %0.1.

Geopolitical Risks and Inflation Data

The impact of geopolitical risks on market pricing is clearly felt in the Eurozone. Particularly, the consumer inflation data released in Germany is on investors' radar. The consumer inflation for December 2025 remains stable on a monthly basis, while showing a %1.8 increase year-on-year, in line with expectations.

Discussions Over Greenland

The news flow developing around the US's desire to purchase Greenland is attracting investors' attention. In a meeting held yesterday, Danish Prime Minister Mette Frederiksen stated that there is a serious disagreement with the US regarding Greenland, indicating that this situation could jeopardize the future of the international military alliance NATO.

On the other hand, White House spokesperson Karoline Leavitt reported that discussions between Vice President JD Vance and Danish officials have been productive, and there may be technical advancements.

Developments to Follow Today

Analysts indicate that geopolitical and political developments, as well as a speech by Andrew Bailey, the Governor of the Bank of England, and the industrial production and capacity utilization data set to be released in the US, will be closely monitored throughout the day.