U.K. stock markets opened higher on Friday, buoyed by growing optimism surrounding global trade developments, particularly a confirmed agreement between the U.S. and China.

As of 07:28 GMT, London’s FTSE 100 index climbed 0.3%, while the pound added 0.1% against the dollar, trading just above $1.37. Continental European markets also advanced, with Germany’s DAX up nearly 1% and France’s CAC 40 leading the way with a 1.3% gain.

Trade breakthrough fuels market enthusiasm

Investor confidence received a boost after China’s Ministry of Commerce officially confirmed that a trade deal with the U.S., first outlined in London earlier this month, had been finalized. The pact, which builds on a previous consensus reached in Geneva, includes mutual concessions: China has agreed to streamline the approval process for certain exports, while the U.S. will withdraw some of its trade restrictions on Chinese goods.

U.S. President Donald Trump alluded to the deal during a White House event on Thursday, though he refrained from disclosing specifics at the time.

JD Sports rallies as Nike outperforms expectations

On the corporate front, JD Sports Fashion (LSE:JD.) saw its shares rally sharply after Nike (NYSE:NKE) delivered upbeat fourth-quarter results. The American sportswear giant exceeded Wall Street forecasts, posting earnings per share of $0.14 on revenue of $11.1 billion.

Nike’s strong performance reverberated across the European athletic apparel sector, lifting names like Adidas (TG:ADS) and Puma (BIT:1PUM). Investor sentiment improved further after Nike’s CEO expressed optimism over the company’s ongoing turnaround strategy, projecting a more stable outlook in the months ahead.

Royal Mail to get new chairman

Elsewhere, Czech billionaire Daniel Kretinsky is set to become the new chairman of Royal Mail, the British postal and parcel service. The announcement came via his investment vehicle, EP Corporate Group, on Friday.

Heathrow lifts forecast on travel rebound

Heathrow Airport has raised its revenue outlook for 2025, citing strong demand for long-haul travel, particularly among leisure passengers. The airport reported solid traffic figures for the first half of the year and claimed it had become Europe’s most punctual major hub. It continues to anticipate a 0.5% annual increase in passenger volume for next year.

Unilever acquires Dr. Squatch in $1.5B deal

According to the Financial Times, Unilever (LSE:ULVR) has agreed to buy U.S.-based men’s grooming brand Dr. Squatch for $1.5 billion from private equity firm Summit Partners. The deal marks another step in Unilever’s efforts to grow its premium personal care segment.

Centrica eyeing stake in Sizewell C

Energy supplier Centrica (LSE:CNA) is reportedly in talks to purchase a 15% stake in the Sizewell C nuclear power project, according to sources cited by the Financial Times. The move would deepen Centrica’s involvement in the U.K.’s energy transition and nuclear infrastructure.

U.K. car output continues to fall

In less upbeat news, U.K. automotive production registered its fifth consecutive monthly decline in May. Industry data released Friday showed continued weakness in the sector, with year-on-year output once again down amid ongoing supply chain pressures and global market uncertainties.

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