European shares traded unevenly Thursday as investors weighed geopolitical headlines and fresh economic data. Germany's DAX slipped 0.2%, France's CAC 40 edged up 0.1%, and the UK's FTSE 100 fell 0.1%. Markets are reacting to shifting diplomatic signals involving Greenland and Iran, alongside a surprisingly strong UK growth report.

U.S. President Donald Trump voiced optimism about securing a deal for Greenland after high-level talks with Danish and Greenlandic officials, though Denmark's foreign minister insisted fundamental disagreements remain. France has convened an emergency defense cabinet, and allied troops are deploying to the territory in a show of solidarity. Meanwhile, Trump downplayed fears of U.S. strikes on Iran, stating that the crackdown on protests appears to be easing.

On the economic front, Britain's economy expanded 0.3% in November, beating forecasts for a 0.1% rise. Corporate news also moved the needle: Richemont reported solid quarterly sales driven by demand in the Americas and Japan. Oil prices slumped over 2%, snapping a five-day rally as fears of supply disruptions from Iran faded.