(Il Sole 24 Ore Radiocor) - Milano, 20 gen - European shares closed lower, continuing a downward trend as escalating trade tensions over Greenland and fresh tariff threats from US president Donald Trump weighed on investor appetite.

Trump's proposal of a 200% tariff on French wine and champagne, aimed at pressuring president Emmanuel Macron, has heightened fears of a broader trade war.

Market participants are now looking to Davos and an upcoming emergency EU summit for a potential response.

On the data front, German economic sentiment improved in January, with the ZEW indicator rising to 59.6 from 45.8 the previous month.

The eurozone's current account surplus narrowed to 9 billion euros in November, down from 27 billion in the previous month, according to the ECB.

The London FTSE 100 closed down 0.67% at 10,126.78 points, the Frankfurt DAX fell 1.01% at 24,707.80 points, the Paris CAC 40 shed 0.61% at 8,062.58 points, while in Milan the FTSE MIB lost 1.07% at 44,713.46 points, and in Madrid the IBEX 35.

closed 1.39% lower at 17,419.76 points.

(RADIOCOR) 20-01-26 18:03:31 (0592) 5 NNNN