European stock markets slip slightly, while Ericsson shares jump 11% following a stronger-than-expected fourth-quarter profit

European stocks closed lower on Friday as investors reacted to developments from Davos, notably Ukrainian President Volodymyr Zelenskyy’s sharply critical address toward Europe.

At 9:10 a.m. in London (4:10 a.m. ET), the pan-European STOXX 600, along with major stocks, was down 0.09%.

European stocks rallied on Thursday after U.S. President Donald Trump said a “framework” agreement had been reached on Greenland and reversed a decision to impose escalating tariffs on a group of European countries.

This followed speculation among American business leaders about a tougher stance on tariffs, who welcomed Trump’s softened approach toward Europe amid the framework news.

Conor Hillyer, co-CEO of J.P. Morgan EMEA, said it was “very good for trade.” However, Zelensky criticized European leaders’ response to geopolitical threats in his speech at the WEF in Davos.

He accused Europe of being “lost,” trying to “change,” and persuading Trump to support them instead of uniting to defend themselves.

Zelensky also said that trilateral meetings between Ukraine, Russia, and the U.S. would take place in the United Arab Emirates on Friday and Saturday to end the war in his country.

Investors will be watching who is on the “Board of Peace” chaired by Trump, which was ostensibly created to oversee the demilitarization and rebuilding of Gaza.

However, Trump said he believes the board will play a role that could rival the United Nations, causing concern among several U.S. allies. Trump rescinded an invitation to Canadian Prime Minister Mark Carney overnight.

Trump also said that a U.S. “fleet” was heading toward Iran amid the government’s brutal crackdown on protesters in the oil-producing nation. Trump told reporters aboard Air Force One, “We have a lot of ships going in that direction, just in case… I don’t want anything to happen, but we’re watching them very closely.”

Benchmark Brent crude futures for March rose 0.94% on Friday. Oil- and gas-related stocks were up 0.9% in early trading.

Regarding companies, Ericsson said in a filing that it plans a share buyback scheme of 15 billion Swedish kronor ($1.7 billion).

The Swedish telecom company reported adjusted earnings before interest and taxes, excluding restructuring costs, of 12.26 billion kronor for the fourth quarter of 2025. This is higher than the 10.09 billion kronor estimate, according to an Infront poll cited by Reuters.

The company’s Stockholm-listed shares jumped nearly 11% at the open. They pared some of those gains and were last seen trading up 8.5%.

President and CEO Börje Ekholm said in a statement that he expects the radio access network market to remain flat in 2026.

He added, “The mission-critical and enterprise markets, where we are well-positioned, are expected to grow. In this environment, we plan to increase investments in R&D during 2026, while continuing to optimize our cost base to support margins and cash flow generation.”

The telecom sector was one of only three sectors to gain in morning trading, rising 1%.

Ubisoft shares plunged as much as 34% on Thursday after the company announced a major restructuring and the cancellation of six games.

The maker of Assassin’s Creed said it expects an operating loss of approximately 1 billion euros ($1.17 billion) in the financial year ending in 2026, following a 650 million euro write-down due to the restructuring, and that it is considering selling some assets.

Ubisoft’s Paris-listed shares rose 3.7% on Friday. Market watchers will also be keeping an eye on the upcoming Supreme Court decision on Trump’s attempt to remove Federal Reserve Governor Lisa Cook, which will bring the independence of the central bank back into focus.

Following this week’s debate, Cook appears safe.

Asian-Pacific markets rose on Friday, following gains on Wall Street in the previous session, as geopolitical concerns eased and investors assessed the Bank of Japan’s decision to keep interest rates steady.

S&P 500 futures rose Thursday night, as major averages continued to climb.