UK equities regained momentum on Thursday as geopolitical tensions eased following the US government’s withdrawal of proposed tariffs on European nations. The move, confirmed by President Donald Trump during a speech at Davos, removed a significant overhang for markets that had been pricing in the risk of trade disruption linked to US strategic interests in Greenland.
The FTSE 100 rose, reversing earlier declines and recapturing ground lost earlier in the week. Multinational constituents benefited most from the shift in sentiment, particularly those in export-oriented sectors that would have been directly affected by any US–EU tariff measures. The FTSE 250 also advanced, led by banks and real estate, which responded positively to the improved risk environment and firming expectations around consumer and corporate resilience.
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