Jan 21 (Reuters) - London's FTSE 100 held steady on Wednesday as weaknesses in banks and industrials amid renewed trade tensions linked to Greenland overshadowed some upbeat earnings. The blue-chip
UK's FTSE 100 recovers after fresh Trump comments on Greenland; Rio Tinto jumps
Market Reactions to Political Developments
By Tharuniyaa Lakshmi
Impact of Mining Stocks
Jan 21 (Reuters) - London's FTSE 100 closed higher on Wednesday, recovering from losses earlier in the day as investors took heart from U.S. President Donald Trump ruling out military action to take control of Greenland.
Inflation and Interest Rate Expectations
Mining shares offered the biggest boost with Rio Tinto jumping 5.2% after the Anglo-Australian miner beat expectations for quarterly iron ore and copper production.
Sector Performance Overview
Higher copper prices also helped Glencore add 3.7% and Anglo American rise by 4.9%.
The blue-chip FTSE 100 closed up at 0.1%, coming off a three-day losing streak.
Trump's increasing threats to Europe over his plans to take control of Greenland hve frayed transatlantic relations and sent global markets into a tailspin earlier this week.
But, in a speech to the World Economic Forum in Davos on Wednesday, he played down the issue as a "small ask" over a "piece of ice" and said that a U.S. acquisition of the Danish Arctic territory would be no threat to the NATO alliance.
The FTSE 250 midcap index meanwhile added 0.5%, with Currys gaining 7.7% after the electricals retailer raised its profit forecast after strong demand for iPhones, coffee machines and children's storytelling boxes boosted Christmas sales.
Among other stocks, Burberry climbed 5% after the luxury brand beat expectations for sales growth in the key holiday quarter, lifting the index of personal goods up 4%.
JD Wetherspoon slumped 6.7% after the pub chain warned that fiscal 2026 profit could fall, sending the pub group down to the bottom of the midcap index.
Meanwhile, data showed British inflation rose by more than expected in December, though investors held steady on their bets on the Bank of England cutting interest rates later this year.
"We continue to expect headline inflation to drop significantly in 2026, and remain of the view that the BoE will cut three times in March, June and September," Goldman Sachs analysts said in a note.
(Reporting by Tharuniyaa Lakshmi in Bengaluru; editing by Vijay Kishore and Mark Heinrich)
