European Markets Flatline After Trump's Davos Remarks, Focus on Geopolitics and Trade (2026-01-21)

Major European equity indices ended nearly unchanged on January 21, 2026, following former U.S. President Donald Trump’s speech at the World Economic Forum in Davos, which offered few surprises on trade or foreign policy. The STOXX Europe 600 closed up just 0.1%, with Germany’s DAX slipping 0.2% and France’s CAC 40 gaining 0.3%. The UK’s FTSE 100 rose 0.4%, supported by energy stocks. U.S. futures edged higher, suggesting a cautiously optimistic open for Wall Street. Trump emphasized economic nationalism and criticized multilateral agreements but did not announce new tariffs or sanctions. Analysts noted the speech lacked concrete policy shifts, limiting market reaction. “Investors were braced for hawkish rhetoric, but the absence of actionable measures reduced volatility,” said Lena Weiss, strategist at Berenberg Capital. Markets remain focused on upcoming eurozone inflation data and Federal Reserve commentary later this week.