Trump Fuels European Stock Swings In Sign of Things to Come

(Bloomberg) — In the days before his inauguration, Donald Trump is moving the stock markets, commenting on everything from defense to renewable energy and even Greenland.

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Shares of companies exposed to wind power, including Orsted A/S, Siemens Energy AG and Vestas Wind Systems A/S, fell more than 6% on Wednesday after the US president-elect announced will try not to have wind farms in his second term.

Tank and missile makers got a boost after Trump called on NATO members to spend 5% of their economic output on defense, twice the current target.Norwegian missile maker Kongsberg Gruppen ASA rose 4.1%, while Sweden’s Saab AB rose 5.4% and Germany’s Rheinmetall AG rose 5.3%.

Meanwhile, a report by CNN that Trump is considering declaring a national economic emergency to provide a legal basis for blanket tariffs dealt a fresh blow to auto and luxury stocks.Fiat and Alfa Romeo car maker Stellantis NV fell is by 3.1%, and Louis Vuitton owner LVMH by 2.2%.

European stocks most exposed to the tariffs have underperformed the market since last year on fears that the fallout from a potential trade war could hit company profits, with the UBS Group AG basket tracking similar names down about 8%.

Wednesday’s moves are an early taste of the volatility investors can expect from Trump’s term in office. after Trump reiterated his interest in acquiring the island.

“At this stage, his statements raise questions and create uncertainty about the trade and foreign policy he intends to implement the day after his inauguration on January 20,” CIC Market wrote in a note. A team led by Solutions economist Adrien Regnier-Laurant.

– With support from Paul Jarvis.

(Updates on cars and luxury stocks in the fourth paragraph).

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