European Shares Drop as Greenland Tensions Escalate Over Resource Rights

European stock markets declined on January 19, 2026, after escalating geopolitical tensions involving Greenland’s mineral resource rights triggered investor concerns over supply chain disruptions and regulatory uncertainty. The pan-European STOXX 600 index fell 1.2%, with mining and energy sectors leading losses. The downturn followed statements from a Nordic government asserting sovereignty over Greenland’s rare earth deposits, prompting international backlash. Danish officials warned of potential diplomatic fallout, while commodity traders reacted to heightened risks in critical supply chains. Shares in major European mining firms— including Lundin Mining (LUNDF) and Boliden (BOLIF)—slumped 3.5% and 4.1%, respectively. Analysts noted that any disruption to Greenland’s lithium and cobalt exports could impact EU decarbonization goals and battery production timelines.