European equity markets have rebounded after a choppy week for stocks as new tariff plans in the US continue to make waves across the globe.
Germany and France’s top indices both moved higher on Wednesday, while the UK’s also returned to growth.
The blue-chip FTSE 100 index climbed 44.98 points, or 0.53%, to close at 8,540.97.
In Frankfurt, the Dax jumped 1.56%, marking an improvement after sharp losses this week.
In Paris, the Cac 40 rose 0.59%.
Over in New York, the S&P 500 was up about 0.5% by the time European markets closed.
The index has suffered heavy losses in recent days amid escalating trade tensions.
The sell-off continued for Dow Jones, which was around 0.2% lower.
Tariff concerns were briefly overshadowed by a stronger inflation reading for the US, with the latest official figures showing price rises eased last month.
The consumer price index rose by 0.2% in February, lower than analysts had been expecting and down from the previous month.
Jochen Stanzl, chief market analyst for CMC Markets said the positive news was “currently overshadowed by uncertainties surrounding President Trump’s trade policy, which could have unpredictable consequences for growth and inflation in the coming months”.
“Any sustainable change in sentiment will likely depend on the evolution of the US government’s trade policy,” he added.
“Many investors associate tariffs with higher inflation, which could soon negate the hard-won declines in Fed interest rates.”
The pound was strengthening against the US dollar, up 0.2% at 1.2975, and against the euro, up 0.3% at 1.895.
In company news, Legal & General announced a £500 million share buyback after reporting a 6% rise in core operating profits for 2024.
The insurance and pensions giant aims to return more than £5 billion to shareholders within three years via dividends and buybacks. Shares in L&G declined 2.3% despite the update to investors.
Elsewhere, Balfour Beatty also said it would commence a £125 million share buyback for 2025, with an expected total cash return of about £188 million for the year.
This came despite the infrastructure group reporting a declining pre-tax profit for 2024, compared with the previous year, but said its order book had grown as demand for engineering and construction expertise picked up in the UK.
Shares in Balfour Beatty closed 4.5% higher.
The biggest risers on the FTSE 100 were Melrose Industries, up 31.4p to 518p, Spirax, up 390p to 7,140p, Fresnillo, up 40.5p to 894.5p, Rolls-Royce, up 33.6p to 781p, and Intermediate Capital, up 68p to 2,090p.
The biggest fallers on the FTSE 100 were IAG, down 13.9p to 277.6p, AB Foods, down 84p to 1,847p, Smith & Nephew, down 45p to 1,096p, Persimmon, down 40.5p to 1,194p, and JD Sports, down 2.38p to 72.88p.
