Investing.com — British stocks closed higher on Wednesday, reversing earlier losses, as investors assessed U.S. President Donald Trump’s arrival in Beijing for talks with Chinese President Xi Jinping, while persistent tensions surrounding Iran and rising inflation concerns continued to weigh on market sentiment.
The rose 0.6%, while sterling slipped against the dollar to 1.3520. Germany’s gained 0.6% and France’s climbed 0.4%.
Markets recovered modestly from the previous session’s losses, with sentiment supported by hopes Trump’s three-day China visit could ease trade tensions between the world’s two largest economies and support global growth expectations.
Trump landed in Beijing earlier in the day ahead of talks scheduled for Thursday and Friday, with discussions expected to focus on trade, Taiwan, artificial intelligence and the ongoing U.S.-Israel conflict with Iran.
Trump said he is seeking to “open up China,” raising hopes of fresh progress on trade after the two sides agreed to consider extending a truce on Chinese rare earth export curbs.
Diplomatic efforts to end the war remain deadlocked. Trump warned Tehran on Tuesday that if Iran does not accept U.S. terms, the United States will “finish the job.”
Iran’s chief negotiator Mohammad Bagher Ghalibaf fired back, saying Washington must accept Tehran’s 14-point proposal or face “nothing but one failure after another.”
Trump dismissed Iran’s response as “TOTALLY UNACCEPTABLE.” Neither side appears willing to return to all-out war, but the ceasefire remains fragile after more than two months of fighting that erupted with U.S.-Israeli strikes on Iran.
Ahead of his Beijing talks, Trump insisted China’s help on Iran was not needed. “We have Iran very much under control,” he said.
“We are either gonna make a deal or they will be decimated.” Beijing, for its part, used the eve of the summit to reaffirm that its resolve to oppose Taiwan independence is “as firm as a rock.”
UK round up
warned of a £140 million charge on its fixed-price Type 31 frigate contract, pushing total losses on the Royal Navy deal beyond £300 million, though it kept its fiscal 2027 outlook unchanged.
said it expects a fall and delay in advisory transactions as macroeconomic uncertainty from the Middle East conflict weighs on buyer and seller confidence in both the UK and the region, though it held its fiscal 2026 outlook.
acquired a 40% stake in a production sharing agreement covering six oil and gas exploration blocks in Uzbekistan’s Ustyurt region.
warned first-half profit would be significantly lower than last year, pausing its share buyback and slowing construction as it ramps up discounts to clear inventory amid rising costs and Middle East-driven uncertainty.