European markets traded higher on Thursday after stronger UK economic growth data and upbeat early commentary from summit talks between the United States and China helped improve investor confidence.
At 07:11 GMT, the FTSE 100 edged 0.01% higher, while Germany’s DAX advanced 1.15% and France’s CAC 40 rose 0.54%. Sterling was little changed at 1.3522 against the U.S. dollar.
Figures released by the Office for National Statistics showed the UK economy expanded by 0.6% quarter on quarter during the first quarter of 2026, accelerating from 0.2% growth in the previous quarter. Annual GDP growth reached 1.1% for the three months ended 31 March, while March monthly GDP increased 0.3%, outperforming expectations for a 0.1% decline.
Services activity remained the largest contributor to growth, while both construction and production output also expanded during the quarter.
The stronger data may provide some support for the government of Keir Starmer, which has faced political pressure amid inflation concerns and weaker polling following disappointing local election results.
Investor sentiment was also lifted by developments in Beijing, where Donald Trump and Xi Jinping opened summit discussions with notably positive rhetoric.
Donald Trump described Xi as a “great leader” and said bilateral relations were “going to be better than ever before.” Meanwhile, Xi Jinping called for cooperation over confrontation, stating that the two countries “should be partners, not rivals.”
According to Xinhua News Agency, Xi also said trade discussions between the two sides had delivered “generally balanced and positive outcomes” during meetings held the previous day and reiterated that trade wars are ultimately damaging for all participants.
The Chinese president additionally addressed Taiwan during the summit, warning that mishandling the issue could seriously damage relations between the two countries and threaten regional stability.
UK Market Round-Up
Princes Group
Princes Group (LSE:PRN) reported a 17% increase in first-quarter adjusted core profit to £38.2 million, supported by resilient consumer demand. The company said it may raise prices to offset higher fuel, freight and packaging costs linked to ongoing tensions in the Middle East.
ITV plc
ITV plc (LSE:ITV) confirmed it remains in active discussions regarding a potential sale of its Media & Entertainment division to Sky in a transaction reportedly valued at £1.6 billion. ITV also forecast approximately 10% growth in second-quarter advertising revenue, supported by the upcoming football World Cup.
National Grid
National Grid (LSE:NG.) reported annual profit below market expectations after higher storm-related repair costs across its U.S. operations weighed on earnings.
Spire Healthcare Group
Spire Healthcare Group (LSE:SPI) disclosed that it had received a £1 billion takeover proposal from Toscafund Asset Management at 250 pence per share, representing a 66% premium to the previous closing price. The board said it would recommend the offer should a formal bid be made.
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