European Shares Edge Higher Amid Market Caution Ahead of Trump’s Davos Speech

European stock markets traded nearly flat on Wednesday, January 21, 2026, as investors awaited former U.S. President Donald Trump’s keynote address at the World Economic Forum in Davos. The Stoxx Europe 600 index rose 0.1% to close at 498.32, reflecting cautious sentiment ahead of potential policy signals from Trump, who has signaled a return to prominence in global economic discourse. Market participants are monitoring for any hints on trade policy, fiscal strategy, or U.S. regulatory stance, particularly given Trump’s past emphasis on protectionist measures. Meanwhile, the euro strengthened slightly against the dollar, rising 0.3% to $1.0852, while German 10-year bond yields edged up to 2.47%. Analysts caution that volatility could spike post-speech, especially if Trump reiterates aggressive economic nationalism.