European stocks fell while gold prices hit a new high after US President Donald Trump threatened tariffs on European allies until a deal is reached on the US purchase of Greenland.
The price of gold rose 1.6% to $4,671 per ounce (approximately 138 euros per gram), after reaching a historic high.
The US president announced that he would impose a 10% tariff on goods from eight European countries starting February 1.
Trump did not specify whether the tariff would be in addition to what they are already paying.
In response, the European Union is considering imposing retaliatory tariffs of 93 billion euros against the US, previously announced.
French President Emmanuel Macron is also said to have called for the activation of the EU's so-called "anti-force" instrument.
Known as the "trade bazooka," the instrument could block some of America's access to EU markets or result in export controls, among other possible measures.
"Given their deep economic and financial ties, both the US and Europe have the ability to impose significant consequences on each other, but only at great cost to themselves," said Jonas Goltermann, senior markets economist at consultancy Capital Economics.
"As such, the most likely outcome, in our view, is for both sides to acknowledge that a major escalation would be a loss and that compromise ultimately prevails," he added. /Telegraph/
