Focus on Stoxx 600, FTSE, DAX, CAC and Greenland

LONDON — European stocks were in negative territory at the open Thursday, although defense sector stocks rallied following Donald Trump’s call for increased U.S. military spending.

The pan-European Stoxx 600 was last seen down almost 0.2% at 9:54 a.m. in London (4:54 a.m. ET).

Global markets focused this week on rising geopolitical tensions following last weekend’s impeachment of Venezuelan President Nicolas Maduro by the United States, followed by threats to seize Greenland.

Defense stocks extended gains Thursday as investors pushed the sector, putting the sector on track for a fifth straight day of gains as Trump called for a 50% increase in U.S. military spending. He’s considering a $1.5 trillion budget in 2027, according to a TruthSocial article Wednesday evening..

“After long and difficult negotiations with senators, congressmen, secretaries and other political representatives, I have determined that, for the good of our country, especially in these very troubled and dangerous times, our military budget for the year 2027 should not reach $1 trillion. more like $1.5 trillion,” he wrote.

“This will allow us to build the ‘dream army’ that we have long been entitled to and, more importantly, that will keep us safe, no matter the enemy.”

The Stoxx Europe Aerospace and Defense index gained 1.4%. Color, Leonard And Rheinmetall topped the European benchmark, gaining 1.7%, 3.8% and 2.2% respectively, each paring previous gains.

European oil stocks fell on Wednesday, extending their losses for a second day, as investors reacted to speculation that U.S. companies could extract Venezuelan oil. P.A. fell 0.9%, Shell lost 2.4%, and Equinor fell 0.5% at the start of trading.

The price of Brent crude futures for March was last seen at $60.01, just rebounding after falling below $60 on Wednesday.

Wall Street closed lower on Wednesday and defense stocks fell after Trump said he “will not allow“Defense companies must pay dividends or repurchase shares until they address its complaints about the industry, including executive salaries and production problems.

European markets have been on alert this week following Trump’s threats that the United States could use military force to acquire Greenland, a semi-autonomous territory of Denmark.

Regional leaders opposed Trump’s power grab goals, and US Secretary of State Marco Rubio to meet with Danish officials next week. Rubio downplayed the threat of an invasion, saying Trump wanted to “buy” Greenland.

Asia-Pacific Markets traded mixed overnight while US Stock Futures hovered near the flat line.

Investors are awaiting opinions this week from the Supreme Court on the legality of the tariffs imposed by Trump, expected Friday. This decision could result in some potential market volatility.

There are no major results or data releases expected on Thursday.