FTSE 100 joins in global stock markets bounce as Trump drops tariff threat

Comes after the US president removed the threat of additional tariffs on nations who did not support his push to seize control of Greenland

Stock markets rose overnight and those in Europe are following suit, with the FTSE 100 up around 0.75 per cent after an hour of trading on Thursday.

It comes after Donald Trump removed the threat of additional tariffs on nations who did not support his push to seize control of Greenland, which led to an investor rally across much of Asia on Wednesday evening.

However, a Danish MP has said that claims over a deal being struck are “not real”.

This week had seen many major indices fall, as the uncertainty over global trade once more reared its head with the US president showing his hand once more with economic threats.

Despite the tariffs themselves being paid for by American people and companies, the US see them as a sign of strength in their economy because businesses in other nations routinely export to the States.

While the drops in stock markets this week were nowhere near the shocks of last April when tariffs were first announced, they had fallen in midweek. Typically, markets don't take a “side” as to what's the right outcome; they'll drop when there's uncertainty over direction, so the removal of that uncertainty - companies may sell and export fewer products if people have to pay a tariff on top of the price - has boosted confidence among investors.

President Trump gave a long-winded speech at Davos on Wednesday which, at times, centred on why the US saw Greenland as central to their security and economic future.

As well as London's main index rising, Germany's DAX and the Euro Stoxx 50 were both up around 1.2 per cent by 9am GMT.

That followed Japan's Nikkei 225 index rising more than 1.7 per cent overnight, while the Korean Kospi rose almost 0.9 per cent and there were smaller rises too in Shanghai, India's Nifty 50 and Australia's ASX 200.

In London, St. James’ Place rose 3.1 per cent in early trading as the biggest winner, with Land Securities Group (2.8 per cent), Vodafone (2.8 per cent) and British Land (2.5 per cent) also all benefiting.

The FTSE 100 is up 2.8 per cent for the year so far, while the US’ S&P 500 is only up 0.4 per cent - though projected to rise up to 0.6 per cent when markets open later on Thursday.