UK Shares Rally as Trump Backs Down on Greenland Tariff Threats

UK shares experienced a broad-based rally as U.S. President Donald Trump abandoned tariff threats related to Greenland. This led to a recovery in markets across Europe, aiding both the FTSE 100 and midcap FTSE 250 indices. Banks, real estate, and tech stocks helped drive the gains.

In a significant market shift, UK shares advanced broadly on Thursday, prompted by a wave of investor optimism following President Donald Trump's decision to retract tariff threats against Greenland. The move alleviated concerns of escalating trade tensions.

President Trump, after meeting with NATO Secretary General Mark Rutte, confirmed that the U.S. would not impose tariffs on imports from eight European countries. Instead, they agreed on a framework for Greenland's future, sparking a relief rally across Europe. The pan-European STOXX 600 climbed 1.2%, benefiting from restored market confidence.

At 1042 GMT, the UK's FTSE 100 had gained 0.7%, poised to recover much of its weekly losses. The FTSE 250 index also appreciated by nearly 1.4%, led by a 1.9% boost in bank shares such as Barclays and HSBC. Real estate and tech stocks saw similar gains, with Computacenter surging 10.2% following a positive profit forecast.

(With inputs from agencies.)