The FTSE 100 gained 0.3% as European markets climbed, with President Donald Trump softening tariff threats linked to Greenland. The move, following talks with NATO's Mark Rutte, lifted auto stocks like Mercedes-Benz and BMW but pressured defence shares such as Rheinmetall and SAAB.

Trump said a tariff framework was progressing, easing transatlantic trade tensions. This shift benefits exporters while calming geopolitical fears. The British pound remained flat against the dollar, reflecting cautious investor sentiment despite the equity rally across Germany and France.

Individual stocks also moved on earnings. Computacenter surged after raising its profit forecast, while Senior's aerospace division boosted its outlook. Conversely, B&M cut its profit guidance, and Harbour Energy projected lower 2026 output. AJ Bell beat customer growth expectations, and Beazley rejected a takeover bid from Zurich Insurance.