By 8:10 a.m., the "future" contract on the CAC 40 index – which has now rolled over to the February expiry – was down 166.5 points at 8,111, signaling a session set to open in the red.

After a strong start to the year, European markets are likely to face turbulence in the coming days in light of the trade escalation decided by Donald Trump as he seeks to take control of Greenland.

On Saturday, the American president promised to impose a wave of tariffs on several European allies until the United States is allowed to acquire Greenland.

On his Truth Social network, Donald Trump announced that 10% surcharges would be applied starting February 1 to countries opposing U.S. control of Greenland, including Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland.

These tariffs would rise to 25% on June 1 and would remain in force until an agreement is reached for the U.S. purchase of the Danish autonomous territory, he added.

These announcements, which abruptly end the truce that had been in place on trade issues since "Liberation Day" last April, were met with a wave of consternation across the Old Continent.

In a statement published on the Brussels website, Ursula von der Leyen affirmed that the European Union stands fully in solidarity with Denmark and the people of Greenland, with the intention to remain united, coordinated, and determined to defend its sovereignty.

The President of the European Commission also warned that new tariffs risk undermining transatlantic relations and triggering a "dangerous" spiral.

According to Bloomberg, the EU is nevertheless considering imposing tariffs on some 93 billion dollars' worth of American products in retaliation.

This sudden rise in tensions is expected to prompt investors to shun the riskiest assets in favor of those considered safest.

"We nonetheless advise investors to remain calm," recommends Joachim Klement, market analyst at Panmure Liberum, in a note published this morning.

While the strategist lists around sixty European companies likely to be penalized by these tariffs, such as Logitech, Porsche, Ferrari, Daimler Truck, or Schneider Electric, he also believes these measures can easily be circumvented by affected companies.

"They simply need to ship their products to the United States via countries exempt from these surcharges, such as Spain, Italy, Belgium, and Ireland," he explains.

Investor nerves may be further heightened by the fact that equity indices will not have the support of Wall Street, which will remain closed for an extended weekend due to "Martin Luther King Day," a public holiday commemorating the civil rights leader's birthday.

Markets are also preparing for a ramp-up in corporate earnings season.

The session will be particularly busy on this front, with the publication of results from Netflix and Intel, among others, in the United States, as well as from Ericsson in Europe.

As for economic data, the latest figures on U.S. growth and inflation, as well as global PMI activity indices, will be the main highlights in the coming days.

Meanwhile, the week will also be marked by the annual World Economic Forum in Davos, where President Trump will participate and deliver a speech. The event is also expected to feature addresses from numerous monetary policy officials.

In this context, the issue of Federal Reserve independence is likely to return to the spotlight, as the Supreme Court is set to hear arguments on Wednesday in the case involving Governor Cook and her removal, linked to allegations of mortgage fraud.

The dollar is weakening due to tariff concerns, especially against the yen but also the euro, which is climbing above the 1.1630 mark.

Gold, the ultimate safe haven, has reached new all-time highs, rising 1.7% to $4,674.7, a surge driven by many investors shifting into what are considered the safest assets.