The FTSE 100 (^FTSE) and European markets were cautiously higher on Friday, after a tumultuous week of mixed messages on tariffs from US president Donald Trump.

The moves came as China's president Xi Jinping called on EU leaders to join the country in standing up to Trump's erratic policies on import taxes.

Xi implored the EU to "oppose unilateral bullying practices". Speaking after a meeting with Spanish prime minister Pedro Sanchez, he said "going against the world will only lead to isolation."

This week has been marked by escalating promises of levies by China and the US. China announced an 84% import tax for US goods, up from 34%. Donald Trump's 104% tariff came into force on Wednesday and was later hiked to 125%.

London's benchmark index built on a 3.5% gain from Thursday, as confidence returned to the market. Among the top risers in early trade were mining companies such as Fresnillo (FRES.L), Glencore (GLEN.L) and Endeavour (EDV.L). The domestically-focused FTSE 250 (^FTMC) also rose 0.4% following data which showed the UK economy had unexpectedly grown 0.5% in February. The DAX (^GDAXI) in Germany rose 0.7%, while France's CAC 40 (^FCHI) ticked up 0.9%. The pan-European STOXX 600 (^STOXX) rose 0.4%.

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18 mins ago

Lucy Harley-McKeown

Dollar down

The dollar index (DX-Y.NYB), which tracks the world's reserve asset against a basket of currencies, is 1.1% lower this morning.

Anxieties linked to trade continue to reverberate in currency markets.

Meanwhile, sterling has risen 0.7% against the dollar so far this session, heading towards the $1.31 mark. 45 mins ago

Lucy Harley-McKeown

Chancellor responds to UK GDP growth figures

Rachel Reeves said: 47 mins ago

Lucy Harley-McKeown

UK exports to US jump in February

According to today’s ONS trade data, the total goods and services trade deficit narrowed by £7.5bn to a deficit of £1.0bn in the three months to February 2025, the lowest total trade deficit since the three months to July 2021.

Exports of goods to the United States increased by £500m in February 2025, the third consecutive monthly rise, while imports of goods from the United States increased by £200m.

The value of goods imports increased by £2.8bn (5.9%) in February 2025, reflecting a rise in both EU and non-EU imports, while the value of goods exports remained stable, with minimal change to exports for both EU and non-EU countries.

George Roberts, senior dealer at financial services firm Ebury, said: 53 mins ago

Lucy Harley-McKeown

Here's the stock futures chart 53 mins ago

Lucy Harley-McKeown

What's happening to US stock futures

Our US team writes:

US stock futures extended some of Thursday's losses before bouncing back as Wall Street gets ready to wrap up another week of tariff-fuelled turmoil.

Futures tied to the S&P 500 (ES=F) were up 1.2%, those on the tech-heavy Nasdaq (NQ=F) popped 1.5%. Dow Jones Industrial Average futures (YM=F) climbed 1%

The major stock indexes are reeling from whiplash toward the end of another week roiled by President Trump's fast-moving tariff policy, after pulling off historic gains during Wednesday's session followed by subsequent plunges on Thursday. The S&P 500 (^GSPC) has seen six consecutive sessions of extreme volatility, moving at a range of more than 5% back and forth in each of them.

Thursday's session showed that the initial optimism from Trump's 90-day "pause" on reciprocal tariffs for most trade partners had given way to concern about his escalation with China.

On Thursday, the White House provided Wall Street with another stunner: Tariffs on Chinese imports were actually increased to 145%, not the 125% that Trump had originally suggested when he announced the broad pause. 55 mins ago

Lucy Harley-McKeown

UK economy grows unexpectedly in February

The UK economy grew by 0.5% in February, according to the Office for National Statistics (ONS), in a boost for chancellor Rachel Reeves before an expected downturn triggered by Donald Trump’s tariff blitz.

Friday’s monthly GDP figure was above the 0.1% increase forecast by economists polled by Reuters. There was no growth in January, revised up from a previous estimate of a 0.1% contraction.

The 0.5% rise in February came mostly due to growth in the services sector, although all sectors showed growth, the ONS said.

The figures predate Trump’s announcement on 2 April that he would impose steep import tariffs on most countries in the world, including a 10% levy for the UK. The move triggered a sharp fall in global stock markets and prompted fears of a recession on both sides of the Atlantic.

Read more on Yahoo Finance UK 56 mins ago

Lucy Harley-McKeown

Good morning!

Hello from London. It's Lucy Harley-McKeown here, rounding off a suitably mad week in markets.

This morning we've already had a UK GDP reading and German inflation data (more on that later).

European Central Bank president Christine Lagarde will also speak this morning. And later in the afternoon there's fresh US PPI data.

Let's get to it.

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