Finance
London stocks advance as Trump drops Greenland tariff threat
Published by Global Banking and Finance Review
Posted on January 22, 2026
2 min readLast updated: January 22, 2026
Quick Summary
London stocks rise as Trump drops Greenland tariff threat, boosting UK shares and improving market sentiment. FTSE indices gain as banks and real estate stocks climb.
London stocks advance as Trump drops Greenland tariff threat
Market Reactions to Trump's Tariff Announcement
Jan 22 (Reuters) - UK shares edged up in a broad-based rally on Thursday, as risk appetite improved after U.S. President Donald Trump abandoned tariff threats linked to Greenland and ruled out using force to seize the autonomous Danish territory.
Impact on UK Stocks
Trump on Wednesday stepped back from imposing tariffs on U.S.-bound exports from eight European countries following a meeting with NATO Secretary General Mark Rutte, during which they reached the framework of a deal for Greenland's future.
Sector Performance
A relief rally ensued across Europe on Thursday after a resurgence in trade war fears roiled global markets earlier this week. The pan-European STOXX 600 was last up 1.2%.
Investor Sentiment and Economic Data
UK's blue-chip FTSE 100 was up 0.7% by 1042 GMT, set to recoup most of the week's losses. The domestically-focussed midcap FTSE 250 was up nearly 1.4%.
Banks were the biggest boost to the index, up 1.9%, as heavyweights Barclays and HSBC rose more than 1% each.
Real estate stocks and construction and materials also climbed 1.9% each.
The earnings season continued to gathered momentum. Computacenter shares up 10.2% after the technology firm provided an upbeat profit forecast.
Senior climbed 8.9% after the engineering firm raised its annual profit forecast for the second time in two months, while AJ Bell rose 4.9% after the investment platform reported a 27.7% rise in first-quarter gross inflows for its platform business.
Retailer B&M issued its second profit warning in three months. Its shares were last up 2.7%, after falling as much 5% earlier in the day.
Heavyweight energy shares were down as crude oil prices fell around 1%.
Investors would also monitor U.S. consumer spending and GDP data due later in the day for clues on the interest rate path of the U.S. Federal Reserve.
Meanwhile, in the UK, data showed Britain's government borrowed less than expected in December, something that may give Finance Minister Rachel Reeves reasons for optimism in 2026.
(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Shilpi Majumdar)
Key Takeaways
- •London stocks rise as Trump drops Greenland tariff threat.
- •UK shares see broad-based rally with improved risk appetite.
- •FTSE 100 and FTSE 250 indices show significant gains.
- •Banks, real estate, and construction sectors perform well.
- •Investors await U.S. consumer spending and GDP data.
Frequently Asked Questions about London stocks advance as Trump drops Greenland tariff threat
1What is the FTSE 100?
The FTSE 100 is a stock market index that represents the 100 largest companies listed on the London Stock Exchange, reflecting the performance of the UK economy.
2What is investor sentiment?
Investor sentiment is the overall attitude of investors toward a particular market or asset, often influencing market trends and movements.
3What is the earnings season?
Earnings season is the period during which publicly traded companies report their quarterly financial results, impacting stock prices and market performance.
