Europe bulletin: London stocks rise, Meta's big decision, Spain slams Trump

European markets traded cautiously higher on Thursday as investors balanced strong corporate earnings with rising geopolitical tensions in the Middle East.

London’s FTSE 100 edged up, supported by gains in energy and several earnings-driven moves among blue-chip and mid-cap stocks.

Rentokil, Entain, and Grafton advanced after posting upbeat results, while Reckitt slid on a warning about difficult trading conditions in Europe.

Meanwhile, developments involving Meta’s WhatsApp policies, defence sector demand linked to the Iran conflict, and a diplomatic dispute between Spain and the US added to the day’s complex market backdrop.

London stocks soar on upbeat earnings

London stocks inched higher on Thursday, lifted by upbeat earnings from several blue‑chip and mid‑cap names even as investors kept a wary eye on the escalating US-Iran conflict.

The FTSE 100 added around 0.1%, supported by energy shares and a sharp jump in pest control group Rentokil after it reported higher annual adjusted pretax profit.

Entain also advanced after the Ladbrokes owner posted slightly better‑than‑expected full‑year earnings, while building materials group Grafton rose on a profit beat and a £25 million buyback announcement.

Reckitt fell about 6% as the consumer goods group warned of persistent tough trading in Europe, underscoring lingering pressure on parts of the defensive sector.

Meta to open WhatsApp to rival AI chatbots

Meta Platforms agreed to open WhatsApp to rival AI chatbots in Europe for a year, hoping to dodge interim EU antitrust orders after blocking competitors.

The European Commission had threatened action last month to prevent serious harm to AI rivals, following complaints over Meta's January 15 policy that limited access to its own Meta AI assistant.

Now, Meta will let general-purpose AI bots use the WhatsApp Business API for a fee, giving regulators time to wrap up their probe.

A Meta spokesperson said this removes the need for immediate intervention. Still, one rival CEO called the paid access just another barrier in disguise.

The Commission is reviewing if the fix holds up.

German defence firm sees Iran war boost

Renk Group's CEO sees upside from the Iran conflict for its Middle East defense business.

Alexander Sagel told analysts on Thursday the turmoil could spark more demand for ground systems, beyond just air defenses and ammo.

He cited a fresh prototype order from a Gulf state as an early sign, amid ballistic missile threats hitting US bases and energy sites there.

Renk posted solid 2025 results, with revenue up 19.8% and a record €6.68 billion order backlog, though 2026 guidance missed hopes slightly.

Shares dipped over 4% midday in Frankfurt, still up sharply since its 2024 IPO on the Europe-wide defense spending surge.

Spain slams Trump administration on Iran war claims

Spain's government slammed White House claims that it agreed to aid US forces in the Iran war.

Spokesperson Karoline Leavitt said Madrid had shifted stance on joint bases after Trump's nudge, but Foreign Minister Jose Manuel Albares called it false and reaffirmed no access for strikes.

The spat follows Trump's threat to axe all trade with Spain over its refusal, branding it "terrible" on NATO spending too.

Prime Minister Pedro Sánchez stuck to "no to war," warning of Iraq-like fallout and urging diplomacy.

The EU backed Spain's solidarity amid tough collective trade talks. Experts note US surplus with Spain muddies Trump's tariff play.