UK's FTSE 100 holds steady as upbeat earnings offset global trade tensions

Jan 21 (Reuters) - London's FTSE 100 held steady on Wednesday as weaknesses in banks and industrials amid renewed trade tensions linked to Greenland overshadowed some upbeat earnings.

The blue-chip FTSE 100 .FTSE was flat at 22,997.66 points by 1045 GMT, coming off a three-day losing streak.

Market sentiment deteriorated this week after U.S. President Donald Trump threatened to introduce escalating tariffs on eight European nations from February 1 unless the United States is allowed to buy Greenland.

Trump arrives in Davos, Switzerland, on Wednesday, where he is likely to escalate his push for acquiring the island despite European protests.

Banks .FTNMX301010 were the biggest drag on the FTSE 100, down 0.9%, while industrial support services .FTNMX502050 and aerospace and defence .FTNMX502010 lost 2.1% and 1.4%, respectively.

Credit data and analytics company Experian EXPN.L maintained its full-year forecast and reported an 8% growth in its third-quarter organic revenue, though its shares dropped 5.2%.

Helping limit losses, London-listed shares Rio Tinto RIO.L jumped 5% after the Anglo-Australian miner beat expectations for quarterly iron ore and copper production.

Industrial metal miners .FTNMX551020 and precious metal miners .FTNMX551030 continued to rise as prices of gold, silver and copper gained, with investors also gravitating toward the metals as safe‑haven assets.

Burberry BRBY.L climbed 5% after the luxury brand beat expectations for sales growth in the key holiday quarter.

The FTSE 250 midcap index .FTMC meanwhile added 0.1% with Premier Foods PFD.L up 6.6% after the Mr Kipling owner forecast annual profit at the upper end of market expectations.

JD Wetherspoon JDW.L slumped 6.7% after the pub chain warned that fiscal 2026 profit could fall.

Meanwhile, data showed British inflation rose by more than expected in December, though investors held steady on their bets on the Bank of England cutting interest rates later this year.

"We continue to expect headline inflation to drop significantly in 2026, and remain of the view that the BoE will cut three times in March, June, and September," Goldman Sachs analysts said in a note.