Berliner Boersenzeitung - Stocks rise as Trump signals US-UK 'trade deal'

After the turbulence sparked by the US president's "Liberation Day" tariffs on April 2, markets have settled in recent weeks on optimism that countries will reach agreements with Washington to avoid his potentially damaging levies.

Trump said on Thursday that "this should be a very big and exciting day for the United States of America and the United Kingdom."

He called the US-UK agreement "a full and comprehensive one" and said it was the first of "many other deals".

UK Prime Minister Keir Starmer said he would give an "update" later in the day, with speculation over whether the announcement would be a finalised deal or a framework for further negotiation.

"It's hoped that the agreement will lower tariffs imposed on certain UK goods sold into the US, but nothing is certain with Trump until we get the full details," said AJ Bell investment director Russ Mould.

That added to market optimism spurred this week when Chinese and US officials said top negotiators would meet on Saturday and Sunday for their first talks since Trump unveiled his tariffs assault.

The gathering has fuelled hopes for a dialling down of tensions between the world's economic superpowers, which has seen Washington impose levies of 145 percent on China and Beijing retaliate with 125 percent tolls of its own.

The pound edged down against the dollar in late morning.

London was on the front foot, tracking gains in Tokyo, Hong Kong and Shanghai.

Frankfurt led European gains after data showed German industrial production jumped more than expected in March, a boost for Europe's biggest economy.

Paris also rose and US futures were up.

The Bank of England is widely expected to trim its key rate by a quarter point on Thursday, and investors will be looking for hints of further reductions this year.

"The combination of a weaker growth outlook and better than expected inflation offers enough wiggle room to cut," said Matt Britzman, senior equity analyst at Hargreaves Lansdown.

The Swedish and Norwegian central banks kept their rates unchanged on Thursday, with both hinting future cuts are possible despite economic uncertainty in the wake of US tariffs.

That comes after the US central bank on Wednesday paused rate cuts and warned of higher risks to its inflation and unemployment goals in a likely reference to Trump's tariff rollout.

Trump has in recent weeks hit out at Federal Reserve boss Jerome Powell for not cutting rates quickly enough, and last month markets were roiled by fears he could try to oust him.

Analysts do not expect the Fed to move until July at the earliest.

Mould said investors were also closely watching soaring tensions between India and Pakistan and "hoping the situation does not escalate further".

- Key figures at around 1015 GMT -

London - FTSE 100: UP 0.4 percent at 8,596.25 points

Paris - CAC 40: UP 1.1 percent at 7,708.07

Frankfurt - DAX: UP 1.2 percent at 23,398.78

Tokyo - Nikkei 225: UP 0.4 percent at 36,928.63 (close)

Hong Kong - Hang Seng Index: UP 0.4 percent at 22,775.92 (close)

Shanghai - Composite: UP 0.3 percent at 3,352.00 (close)

New York - Dow: UP 0.7 percent at 41,113.97 (close)

Euro/dollar: DOWN at $1.1282 from $1.1301 on Wednesday

Pound/dollar: DOWN at $1.3274 from $1.3286

Dollar/yen: UP at 144.90 yen from 143.89 yen

Euro/pound: DOWN at 84.99 pence from 85.05 pence

West Texas Intermediate: UP 1.2 percent at $58.74 per barrel

Brent North Sea Crude: UP 1.0 percent at $61.71 per barrel

(G.Gruner--BBZ)