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#TrumpWithdrawsEUTariffThreats European shares rebounded on Thursday after U.S. President Donald Trump abandoned tariff threats linked to Greenland and ruled out using force to seize the autonomous Danish territory.
The pan-European STOXX 600 climbed 1% by 0802 GMT, regaining some poise after a revival of trade war jitters shaved 1.9% off the benchmark index this week through Wednesday.
Trump said he withdrew the tariff threat following a meeting with NATO Secretary General Mark Rutte, in which they had reached the framework of a deal for Greenland's future.
While details were scant, Trump's comments were enough to lift the risk sentiment among investors who have been worried about a potential trade war.
Investors are also parsing a batch of financial updates from companies, looking for clues on profit outlook and demand trends.
Shares of Volkswagen, Europe's largest carmaker, climbed 4.3% after the company reported better-than-expected net cash flow for 2025.