British equities started Tuesday with modest gains as traders digested a major trade development between India and the European Union and weighed a batch of corporate updates. By 08:37 GMT the FTSE 100 had climbed about 0.1%, while the pound slipped roughly 0.1% against the dollar but remained close to the $1.36 mark.
Although European markets initially reacted positively to the news from Brussels and New Delhi, the rally did not hold. Germany’s DAX later traded about 0.1% lower and France’s CAC 40 eased around 0.09%, reflecting a mixed opening across the continent.
Historic EU-India trade deal announced
Negotiations that began in 2007 reached a conclusion as India and the European Union finalized a Free Trade Agreement characterized in public statements as a landmark arrangement. The deal covers roughly 25% of global gross domestic product and about one-third of international trade, according to the announcement.
At the India Energy Week 2026 opening ceremony, Prime Minister Narendra Modi said: "Yesterday a big agreement was signed between the European Union and India. People are calling this the mother of all deals. This agreement will bring major opportunities for the public in India and Europe." He added that the pact would bolster manufacturing, expand the services sector, and raise investor confidence in India.
FTSE 100 company updates
Several London-listed companies released results and guidance that influenced early trading.
- Cranswick PLC (LON:CWK) reported strong revenue growth in its third quarter, with momentum persisting across all product categories and particularly robust trading during the Christmas period. The company said like-for-like sales rose 7.9% in the first half of the year, and December sales exceeded the prior year’s performance, driven by record festive demand across its Fresh Pork, Convenience and Gourmet ranges.
- Sage Group PLC (LON:SGE) recorded a strong start to fiscal 2026, with first-quarter revenue up 10% to 674 million. The stock rose by more than 5% after the London market opened. North America led growth with revenue up 13% to 304 million, the UK and Ireland increased 10% to 194 million, and Europe advanced 7% to 176 million.
- Paragon Banking Group PLC (LON:PAGPA) flagged margin pressures that could dent 2026 profit by about 6%. The specialist lender said deposit margins entered 2026 at roughly 8 basis points, around 10 basis points lower than the second half of 2025 average, which could compress its net interest margin to as low as 290 basis points from 314 basis points.
- Mitie Group PLC (LON:MTO) reaffirmed its full-year profit forecast of at least 260 million, reporting 10% revenue growth and a 28% jump in its bidding pipeline to a record 30.4 billion.
Automotive sales in Europe: winners and losers
Broader industry data released around the same time showed divergent trends among vehicle manufacturers operating in Europe. Tesla Inc (NASDAQ:TSLA) saw European sales decline nearly 27% in 2025, with deliveries falling to 238,656 units from 326,525 units a year earlier. The company’s market share in the region slipped to 1.8% from 2.5%.
By contrast, China-based BYD Co Ltd-H (HK:1211) recorded a sharp increase in European deliveries, with sales jumping 268.7% to 187,657 units and market share rising to 1.4% from 0.4% over the same period.
Promotional offering mentioned in market commentary
The market write-up included a note about an AI stock-evaluation service that evaluates companies including SGE across more than 100 financial metrics and highlights past winners, citing specific performance examples. The promotional text also referenced a New Year’s sale offering a discount.
Markets remained attentive to how the new trade accord and company-level developments will feed into sectoral performance in coming sessions.