British stocks traded higher on Thursday as the UK reported first-quarter GDP growth of 0.6% quarter-on-quarter and investor sentiment got a lift from a warm opening to the U.S.-China summit talks in Beijing.
The FTSE 100 edged up 0.01%, Germany's DAX rose 1.15% and France's CAC 40 gained 0.54%. Sterling was flat at 1.3522.
Data from the Office for National Statistics showed the UK economy grew 0.6% quarter-on-quarter in Q1 2026, up from a 0.2% expansion in Q4 2025, while annual growth came in at 1.1% for the three months to March 31. Monthly GDP also rose 0.3% in March.
The services sector was the primary driver of the quarterly print, with construction and production also expanding. The figures offer relief to PM Keir Starmer's government.
Investor sentiment was further boosted by developments in Beijing, where U.S. President Donald Trump and Chinese President Xi Jinping opened their summit with an unusually warm exchange. Trump described Xi as a "great leader," and Xi called for cooperation.
Princes Group posted a 17% rise in first-quarter adjusted core profit to £38.2 million. ITV said it remains in active discussions to sell its media division to Sky in a deal valued at £1.6 billion. National Grid posted annual profit below expectations. Spire Healthcare received a £1 billion buyout proposal from Toscafund.
