London stocks were set to gain at the open on Thursday as investors breathed a sigh of relief after US President Donald Trump ditched plans to impose tariffs on European nations that opposed his pursuit of Greenland, and hailed the framework of a deal on the territory.
The FTSE 100 was called to open around 70 points higher.
In a post on Truth Social late on Wednesday, Trump said that based on a "very productive" meeting, he and Nato Secretary General Mark Rutte have formed "the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region".
"This solution, if consummated, will be a great one for the United States of America, and all NATO Nations," he wrote.
"Based upon this understanding, I will not be imposing the Tariffs that were scheduled to go into effect on February 1st. Additional discussions are being held concerning The Golden Dome as it pertains to Greenland."
Danske Bank said: "The proposed deal reportedly grants the US access to Greenland's mineral rights, blocks Russian influence, integrates the Golden Dome defence system, and opens doors to US-backed infrastructure investments.
"Rutte confirmed Greenland's status within the Kingdom of Denmark was not discussed. According to New York times, officials have drawn comparisons between the potential sovereignty over small pockets of Greenland and the status of UK bases in Cyprus, which are classified as British territory. Today, EU leaders will meet at an emergency summit in Brussels to discuss their approach."
On home shores, figures from the Office for National Statistics showed public sector borrowing fell in December to £11.6bn, down by £7.1bn or 38% on December 2024.
Borrowing in the financial year to December 2025 was £140.4bn, down by £0.3bn or 0.2% on the same nine-month period of 2024, but still the third-highest April to December borrowing on record after those of 2020 and 2024.
ONS senior statistician Tom Davies said: "Borrowing in December was substantially down on the same month in 2024, as a result of receipts being up strongly on last year whereas spending is only modestly higher.
"However, across the first nine months of the financial year as a whole, borrowing was fractionally lower than in the same period in 2024."
In corporate news, B&M European Value Retail slashed full-year guidance despite an uptick in festive sales.
Updating on its third-quarter performance, the embattled budget chain said its seasonal ranges had sold well, with UK like-for-like sales up 3% in December and "similar trends" continuing into early January trading.
However, looking to the full-year and B&M warned it now expects adjusted EBITDA to come in between £440m and £475m, compared to its previous range of £470m to £520m.
B&M said the move reflected "ongoing investments in pricing and clearance" as well as the poor performance of Heron Foods.
High technology components manufacturer Senior said it had seen "stronger than expected trading" following its November update, most notably in its aerospace unit, and now expects full-year adjusted pre-tax profits to be "comfortably above previous expectations".
Specialist media group Future said it had bought digital publisher SheerLuxe and its Blush Talent management agency for £39.9m in cash, with an earn-out conditional on future performance capping the deal at £80m.