UK's FTSE 100 recovers after fresh Trump comments on Greenland; Rio Tinto jumps

By Tharuniyaa Lakshmi

Jan 21 (Reuters) - London's FTSE 100 closed higher on Wednesday, recovering from losses earlier in the day as investors took heart from U.S. President Donald Trump ruling out military action to take control of Greenland.

Mining shares offered the biggest boost with Rio Tinto RIO.L jumping 5.2% after the Anglo-Australian miner beat expectations for quarterly iron ore and copper production.

Higher copper prices also helped Glencore GLEN.L add 3.7% and Anglo American AAL.L rise by 4.9%.

The blue-chip FTSE 100 .FTSE closed up at 0.1%, coming off a three-day losing streak.

Trump's increasing threats to Europe over his plans to take control of Greenland hve frayed transatlantic relations and sent global markets into a tailspin earlier this week.

But, in a speech to the World Economic Forum in Davos on Wednesday, he played down the issue as a "small ask" over a "piece of ice" and said that a U.S. acquisition of the Danish Arctic territory would be no threat to the NATO alliance.

The FTSE 250 midcap index .FTMC meanwhile added 0.5%, with Currys CURY.L gaining 7.7% after the electricals retailer raised its profit forecast after strong demand for iPhones, coffee machines and children's storytelling boxes boosted Christmas sales.

Among other stocks, Burberry BRBY.L climbed 5% after the luxury brand beat expectations for sales growth in the key holiday quarter, lifting the index of personal goods .FTNMX402040 up 4%.

JD Wetherspoon JDW.L slumped 6.7% after the pub chain warned that fiscal 2026 profit could fall, sending the pub group down to the bottom of the midcap index.

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.