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Despite a decline in the U.K.’s FTSE 100, British firms including engine-maker Rolls Royce and aerospace firm Melrose both closed higher on news of a U.K.-U.S. trade agreement. Shares of the companies closed 3.7% and 5.2% higher, respectively.

“The contents of the deal remain very limited in their totality and we await the full detail before we can say if there is a winner from this negotiation,” Lindsay James, investment strategist at Quilter, said in emailed comments.

“However, for the U.K. this deal appears to be ultimately favourable for some of its largest exports, specifically cars, auto parts and aerospace engines to name some of the key areas.”

— Jenni Reid

President Donald Trump unveiled the broad outline of a trade agreement with the United Kingdom, though specifics about the deal were not immediately clear, and nothing was signed during the Oval Office event.

“The final details are being written up,” Trump said. “In the coming weeks we’ll have it all very conclusive.”

He said that the deal includes “billions of dollars of increased market access for American exports,” and that the UK will “reduce or eliminate numerous non-tariff barriers that unfairly discriminated against American products.”

While the event was ongoing, Trump’s Truth Social account posted a screenshot indicating U.S. tariffs on the UK will stay at 10%.

— Kevin Breuninger

A former adviser to a British Prime Minister has said the U.K.-U.S. trade deal expected later today is likely to be “far short of anything comprehensive.”

In a post on Truth Social, U.S. President Donald Trump said Thursday: “The agreement with the United Kingdom is a full and comprehensive one that will cement the relationship between the United States and the United Kingdom for many years to come.”

Andrew Hood, international trade lead at London based law firm Fieldfisher and former general counsel to Prime Minister David Cameron, said there were “some” differences between how the U.S. and the U.K. were portraying the trade deal expected to be announced.

“The President described it as full and comprehensive, but it looks more likely to be focussed on reducing tariffs in certain key sectors, notably for cars. It may include steel and other specific sectors but it is a long way off the full Free Trade Agreement the UK and US have been negotiating for almost exactly 5 years,” Hood said. “It appears likely to help address the trade friction created by the President’s recent announcements, but will be far short of anything comprehensive.”

— Ganesh Rao

In addition to launching a WTO complaint against the U.S. on Thursday, the European Commission also said it would open a public consultation on a list of goods that could become subject to EU countermeasures against U.S. tariffs.

The goods — which include certain types of livestock, wine, chocolate and machinery, among other things — are worth 95 billion euros ($107.5 billion), according to the European Commission.

— Chloe Taylor

The European Union announced on Thursday that it was launching a WTO dispute against the U.S. in relation to the Trump administration’s so-called reciprocal tariffs, as well as new levies on cars and car parts imported into America.

“It is the unequivocal view of the EU that these tariffs blatantly violate fundamental WTO rules,” the EU said in a statement. “The EU’s objective is thus to reaffirm that internationally agreed rules matter, and these cannot be unilaterally disregarded by any WTO member, including the US.”

The bloc also said Thursday that it was launching a public consultation on its retaliatory tariffs on American imports, the rollout of which has been paused until the summer.

— Chloe Taylor

Shares of Swiss recruitment giant Adecco gained 9.8% by 12:39 p.m. in London, putting the company’s stock at the top of the regional Stoxx 600 index.

It came after Adecco said its first quarter revenues fell by 3% year-on-year to 5.57 billion euros ($6.29 billion). Analysts had expected the company’s quarterly revenues to come in at 5.54 billion euros, according to LSEG.

— Chloe Taylor

The British pound rallied after the Bank of England cut interest rates, as markets were expecting, on Thursday.

By 12:29 p.m. London time, sterling was around 0.2% higher against the U.S. dollar, while gaining 0.3% against the euro.

Investors are also awaiting an announcement on a potential trade deal between the U.K. and the U.S. later today.

— Chloe Taylor

Yields on U.K. government bonds — known as gilts — moved higher across the board on Thursday afternoon, after the Bank of England trimmed its key interest rate by 25 basis points.

Bond prices and yields move in opposite directions, with prices falling and yields rising when investors are less willing to lend to the government issuing the debt.

Gilts with short-term maturity periods saw the biggest selloff, with yields on both 2- and 5-year gilts rising by around 7 basis points at 12:17 p.m. in London.

U.K. 10-year government bonds saw yields tick higher by 5 basis points, while 20- and 30-year gilt yields added around 2 basis points.

— Chloe Taylor

In an emailed statement, a spokesperson for U.K. Prime Minister Keir Starmer’s office told CNBC an announcement on Britain’s trading relationship with the U.S. was imminent.

“The United States is an indispensable ally for both our economic and national security,” the spokesperson said. “Talks on a deal between our countries have been continuing at pace and the Prime Minister will update later today.”

U.S. President Donald Trump earlier said his administration had finalized a “comprehensive” deal with the U.K. A press conference on the matter is due to take place in the Oval Office at 10:00 a.m. ET (3 p.m. London time).

— Chloe Taylor

The Bank of England cut its key interest rate by 25 basis points on Thursday, bringing it down to 4.25%.

It said the central bank’s Monetary Policy Committee voted by a 5 to 4 majority to enact the reduction. Two of its members wanted to cut rates by 50 basis points, the central bank said, while another two wanted to hold rates steady.

Here’s what the decision could mean for your money.

— Chloe Taylor

Shares of German sportswear brand Puma popped 7% as the company said it would not take the lead on price increases in the U.S. in response to tariffs.

“We don’t want to be the leader in terms of the pricing change in U.S. markets,” chief financial officer Markus Neubrand told journalists on a press call after the company’s earnings release.

“There are other players in our industry where the U.S. is far more relevant. As the third biggest brand globally we shouldn’t be the pricing leaders,” he added.

Shares were up 8% by 11:05 a.m. London time.

The retailer maintained its full-year guidance earlier on Thursday and said it is not quantifying the potential implications of tariffs at this stage.

Read more here.

— Karen Gilchrist

Shares of German arms manufacturer Rheinmetall gained 1.7% by 10:35 a.m. in London, after the defense giant posted stronger-than-expected first-quarter earnings.

The company said Thursday that its sales grew 46% year-on-year in the three months to March to hit 2.3 billion euros ($2.6 billion), with its defense segment seeing a 73% jump in sales. Order backlog reached a new all-time high in the first quarter, with the firm touting “several major orders.”

Analysts had been expecting revenues to hit just over 2 billion euros in the first quarter, according to LSEG data.

Rheinmetall confirmed its 2025 full-year guidance of 25% to 30% sales growth, noting that it saw “further upside potential” as regional governments ramp up defense spending.

“This outlook does not yet take into account the improvement in market potential that is expected to arise in the markets that are particularly relevant for Rheinmetall in Europe, Germany and Ukraine as a result of the geopolitical developments in recent weeks,” the company said in a news release. “Rheinmetall will therefore make any necessary guidance adjustments as the respective requirements of defence customers become more specific over the course of the year.”

— Chloe Taylor

Danish shipping giant Maersk on Thursday posted stronger-than-expected first-quarter operating profit but warned that the current level of U.S.-China trade tariffs could restrict global container market volumes.

The company, widely regarded as a barometer of global trade, reported preliminary underlying earnings before interest, tax, depreciation and amortization (EBITDA) of $2.71 billion for the first three months of the year.

That’s up 70% from $1.59 billion over the same period a year earlier and above the $2.57 billion expected by analysts in an LSEG poll.

Read the full story here.

— Sam Meredith

Sweden’s central bank left its key interest rate unchanged at 2.25% in a decision announced on Thursday morning.

Policymakers said that although inflation was slightly elevated at 2.3%, they expect prices to stabilize. However, they noted that increased uncertainty overseas meant the outlook for the Swedish economy was weaker than they had forecast in March.

“Uncertainty in the global economy has increased significantly since the change of US president, not least as a result of the new US trade policy,” the Riksbank said in a press release.

Officials added that new tariffs were expected to dampen demand in Europe, putting downward pressure on inflation — but they said trade developments remained “very hard to assess.”

“Overall, it is still too early to determine the extent and duration of the effects on economic activity,” the statement said. “The Executive Board assesses that monetary policy is currently well-balanced and that it is wise to await further information to obtain a clearer picture of the outlook for economic activity and inflation.”

— Chloe Taylor

Spanish lender Banco Sabadell’s first-quarter profit surged above expectations to reach 489 million euros ($552 million), figures released on Thursday morning showed.

It represents a 58.6% jump from the same period a year earlier.

Analysts had been forecasting 405.9 million euros in quarterly net profit.

Sabadell is currently the target of a 12 billion euro hostile takeover bid from rival lender BBVA, with the deal currently the subject of a public consultation after Spain’s competition watchdog approved the acquisition last week.

— Chloe Taylor

German sportswear brand Puma on Thursday retained its full-year guidance, saying it is not calculating the potential impact of tariffs at this stage.

The retailer, which relies heavily on manufacturing Asia, nevertheless said it has moved to reduce its U.S. imports from China. It warned in March that it expected to take a hit from President Donald Trump’s tariff regime.

“Due to the highly uncertain implications from the U.S. tariffs, we are not quantifying the potential implications at this stage,” chief financial officer Markus Neubrand said in a statement.

“We already reduced U.S. imports from China and we will continue to remain agile and ready to manage the increased market volatility and swiftly respond to changing external conditions,” he added.

Neubrand added in an earnings call that the company is “constantly reviewing price adjustments” and is considering “cost optimization” for products in the United States. That comes after Rival sportswear giant Adidas warned last week that the levies would lead to price hikes for all of its U.S. products.

The company said it continues to forecast 2025 sales growth in the low- to mid-single-digit percentage range, and operating profit excluding one-time costs of 520 million euros to 600 million euros.

Puma on Thursday reported a slightly better-than-feared 52% year-on-year decline in first-quarter operating profits excluding one-time costs to 76 million euros. That was less than the 58% decline to 66 million euros anticipated by analysts in an LSEG poll, but well below last year’s 159 million euros.

Sales were flat at 2.07 billion euros versus expectations of 2.04 billion euros, led by weaker demand in the U.S. and China.

The U.S. had been a key growth driver for Puma over recent quarters amid soft sales in Europe and Asia-Pacific, most notably China. However, sales in the Americas declined 2.7% in the first quarter, led by softness in the U.S.

— Karen Gilchrist

The world’s largest brewer AB InBev on Thursday flagged a “strong start” to the year, with first-quarter profits at the top end of its outlook as sales volumes dipped less than anticipated.

The drinks maker posted a 7.9% rise in earnings before interest, taxes, depreciation, and amortization (EBITDA) over the three-month period. That was well ahead of analyst expectations for 3.1% growth, according to Reuters.

AB InBev, whose brands include Budweiser, Corona and Stella Artois, also reported a better-than-feared 2.2% decline in first-quarter beer sales. That’s lower than the expected 2.6% decline.

First-quarter revenues totaled $13.63 billion, slightly above the $13.78 forecast by analysts in an LSEG poll.

“The consistent execution of our strategy by our teams and partners drove a solid start to the year and reinforces our confidence in delivering on our outlook for 2025,” CEO Michel Doukeris said in a statement.

The company in February forecast 2025 EBITDA growth in line with its medium-term outlook of between 4% and 8%.

— Karen Gilchrist

Germany’s Siemens Energy on Thursday posted a better-than-expected 20.7% annual jump in quarterly revenue, citing increased demand thanks to “favorable market trends” that ultimately led to one of the company’s best quarters.

Total revenue for the firm’s fiscal second quarter came in at 10 billion euros ($11.3 billion), above the 9.3 billion euros expected by analysts, according to LSEG data. Net income reached 501 million euros — up from 108 million euros in the same period last year.

The company upgraded its full-year guidance on the back of the results, saying it now expects to achieve revenue growth in the range of 13% to 15% in 2025, with a net income of up to 1 billion euros.

However, Siemens Energy also warned that U.S. President Donald Trump’s tariffs regime — and retaliatory measures from other countries — is expected to have a direct impact on its bottom line.

“Siemens Energy is closely monitoring developments and continuously analysing their potential impact on its net assets, financial position and results of operations,” the company said in its earnings release. “For the second half of the fiscal year 2025, a limited direct impact on Siemens Energy’s Profit of up to a high double-digit million € amount, after mitigation measures, is currently expected.”

— Chloe Taylor

Britain is reportedly set to sign a trade deal with the U.S., making it the first country to do so after the world’s largest economy announced stiff “reciprocal” tariffs against friends and foes alike in April.

The New York Times reported the development after U.S. President Donald Trump said on Wednesday night stateside that there will be a briefing about a trade deal next day, without revealing any details.

CNBC did not receive a response from the White House and the British Embassy in Washington seeking comments on the news.

A government spokesperson from the U.K.’s Department for Business and Trade said in response to CNBC’s queries that “The US is an indispensable ally and talks on an economic deal between the U.S. and the UK are ongoing.”

Read the full story here.

— Lim Hui Jie

U.S. equity positioning may not be all that upbeat despite recent trade developments and quarterly results, according to Citi.

“De-escalating trade tensions and a better-than-expected earnings season have led to a period of stability for investor positioning. However, the uplift from bullish flows has been considerably restrained,” Chris Montagu, the firm’s global head of quantitative research, wrote in a note on Wednesday.

Montagu found that positioning momentum levels are actually close to neutral for both the S&P 500 and the Nasdaq Composite.

“Limited bullish flows were overshadowed by increasing short positioning, leading to a decline in positioning levels for the S&P,” he continued. “Nasdaq positioning edged higher, but neither index reflected a strong shift towards bullish positioning over the past week.”

— Sean Conlon

Fed Chair Jerome Powell acknowledged rising headwinds to the central bank’s dual mandate on Wednesday.  

“My gut tells me that uncertainty about the economy is extremely elevated. The downside risks have increased,” Powell told reporters. 

However, he added, “The risks of higher unemployment and higher inflation have risen, but they haven’t materialized yet. … And that tells me more than my intuition,” reiterating the Fed’s decision to keep interest rates unchanged.

— Hakyung Kim

European markets are expected to open higher Thursday.

The U.K.’s FTSE 100 index is expected to open 46 points higher at 8,586, Germany’s DAX up 147 points at 23,263, France’s CAC 45 points higher at 7,662 and Italy’s FTSE MIB 230 points higher at 37,960, according to data from IG.

It’s a busy day for earnings, with Maersk, Siemens Energy, Heidelberg Materials, Henkel, Infineon, Lanxess, Puma, Rheinmetall, Bosch, Norwegian Air, Swisscom, Zurich Insurance, Adecco Group, InterContinental Hotels Group and Banco Sabadell all due to report.

Monetary policy announcements are due from Riksbank, Norges Bank and Bank of England on Thursday, with the latter widely expected to cut interest rates.

— Holly Ellyatt