London markets opened higher on Thursday, lifted by news of a landmark UK-India trade agreement and resilient corporate results, even as UK car production figures pointed to wider industrial weakness.
The FTSE 100 gained 0.5% to 9,110.04 in early trade, with the FTSE 250 also up 0.5% at 22,111.56. The AIM All-Share added 0.2% to 775.16.
The momentum was mirrored across Europe, where the CAC 40 in Paris rose 0.5% and Frankfurt’s DAX climbed 1.0%. Overnight, the Nikkei jumped 1.6%, while US indices closed higher as Wall Street extended gains for a third session.
Investor sentiment was buoyed by news that Prime Minister Keir Starmer and India’s Narendra Modi will finalise a £6 billion investment deal. The agreement, described as the most economically impactful UK trade deal to date, will slash tariffs on a range of British exports, including halving whisky duties and reducing average tariffs on UK goods from 15% to 3%.
Among London-listed firms, Howden Joinery led the FTSE 100 risers, up 11% after posting a 4.4% rise in pretax profit to £117.2 million for the first half of the year. Revenue climbed 3.2%, and the company raised its interim dividend by 2%.
Reckitt Benckiser followed close behind, up 9.0%. Despite a 14% drop in pretax profit and a 2.6% fall in revenue, the consumer goods giant upgraded its full-year outlook, raised its interim dividend by 5%, and announced a fresh £1 billion share buyback programme.
Vesuvius slumped 10% after warning that tough market conditions will likely persist into 2026. First-half EBITDA is expected to fall 21% year-on-year to £77 million.
Outside the trading floor, fresh data from the Society of Motor Manufacturers & Traders showed UK vehicle manufacturing under pressure. Car production fell 7.3% in the first half of the year, while commercial vehicle output plunged 45.4%, with some plants halting output amid global uncertainty and trade policy risks.
Meanwhile, US President Donald Trump hinted at tariff relief for Europe, saying threatened duties could be reduced if the EU opens up further to American firms. The US and EU are racing to reach a deal before new tariffs of up to 30% take effect on 1 August.