European markets head for mixed open as Greenland fears grow

• White House press secretary confirmed the U.S. is considering 'utilizing the U.S. Military' among options to acquire Greenland, citing national security concerns and Russian and Chinese activities in the Arctic region
• European leaders issued a unified statement Tuesday affirming 'Greenland belongs to its people' and rejecting external interference in Denmark-Greenland matters
• Flash euro zone inflation data for December is expected Wednesday at 2%, in line with the European Central Bank's target rate

European Markets Face Mixed Open Amid Greenland Annexation Concerns

European markets are poised for a mixed opening on Wednesday as tensions escalate over U.S. President Donald Trump's threats to annex Greenland. The U.K.'s index is expected to decline 0.2%, while Germany's DAX and France's CAC are projected to rise 0.26% and 0.24% respectively, with Italy's market flat, according to IG data.

Key Developments:

Following the U.S. capture of Venezuelan leader Nicolas Maduro, market focus has shifted to Trump's Greenland ambitions. White House Press Secretary Karoline Leavitt confirmed Tuesday that the administration is considering "a range of options," including potential military action, to acquire the autonomous Danish territory. Trump has justified the move citing national security concerns and increased Russian and Chinese activity in the Arctic region.

Political Response:

Both Greenland and Denmark have firmly rejected any sale, with European leaders issuing a joint statement Tuesday declaring "Greenland belongs to its people" and that only Denmark and Greenland can decide matters concerning the territory.

Economic Data:

Markets await flash eurozone inflation data for December, with Reuters-polled economists forecasting a 2% rate—aligned with the European Central Bank's target. This data will be crucial for assessing the ECB's monetary policy trajectory.

Additionally, Jaguar Land Rover is scheduled to release global sales figures Wednesday.

The Greenland situation introduces geopolitical uncertainty into European markets, potentially affecting investor sentiment and transatlantic relations as traders monitor developments closely.