Stock prices in London opened higher on Thursday after UK government borrowing came in below expectations and US President Donald Trump said he would not impose additional tariffs on European countries opposing his push to acquire Greenland.
Trump said the US had agreed a framework for a future deal covering Greenland and the wider Arctic region following talks with Nato Secretary General Mark Rutte.
While details remain vague, markets focused on the removal of threatened tariffs, easing fears of a broader trade dispute between the US and Europe.
The FTSE 100 opened 0.7% higher, while the FTSE 250 gained 0.9% as risk appetite improved.
Associated British Foods rose 1.3%. The Primark owner reported revenue of £6.76 billion for the 16 weeks to January 3, broadly in line with last year at reported currency but down 0.9% at constant rates. Like-for-like sales rose 2.7%, with retail revenue up 4.2% while grocery sales were flat.
AJ Bell climbed 3.7% after reporting higher assets under management and customer numbers. The investment platform ended the quarter with £109.6 billion in assets, up 15% year on year, and 673,000 customers. The firm said elevated pension outflows were driven by uncertainty ahead of the UK budget, though market movements remained supportive.
Beazley slipped 1.0% after rejecting a third takeover proposal from Zurich Insurance, including a previously undisclosed £8.4 billion approach last year. The insurer said the offers undervalued its business and reiterated confidence in its standalone prospects.
Gulf Keystone Petroleum fell 3.8% despite reporting production at the upper end of guidance. The company said 2026 would be a pivotal year as output is expected to moderate.
On the macro front, UK public sector net borrowing totalled £11.58 billion in December, below expectations and sharply lower than a year earlier, offering some relief to gilt markets.
In the US, Wall Street closed higher on Wednesday, with the Dow, S&P 500 and Nasdaq all rising 1.2%.
For now, Trump’s shift in tone has steadied markets, allowing investors to refocus on earnings and domestic data.