European stocks rose for the first time in five sessions on Thursday, with both the STOXX 50 and the STOXX 600 gaining 1.2%, after US President Trump announced he would suspend plans to impose new tariffs on a group of European countries, saying a “framework agreement” had been reached over Greenland. The rebound followed a meeting with the NATO Secretary General, although no details of the agreement were disclosed. On Wednesday, President Trump said at the Davos meeting that he would not use force to take over Greenland, and the European Parliament suspended approval of the EU–US trade deal agreed in July in protest over his earlier threats. Luxury and auto stocks led the gains, with LVMH up 1.9%, Hermès rising 2.3%, Mercedes-Benz advancing 3%, and Porsche gaining 3.7%. Volkswagen surged more than 5% after reporting a roughly 20% year-on-year increase in cash flow. In contrast, defence stocks moved lower, with Rheinmetall down 2.4% and Leonardo falling 2%.
