CNBC

Bond traders are bracing for more U.K. instability as Prime Minister Keir Starmer is expected to be formally challenged by rivals on Thursday, as he clings to power. Health Secretary Wes Streeting is expected to resign to launch a leadership bid, while Starmer's former deputy Angela Rayner has reportedly been cleared of deliberate wrongdoing over her tax affairs, boosting her prospects for another potential leadership bid. Supporters of a popular third contender, Greater Manchester Mayor Andy Burnham, are said to pressing the Labour Party's governing body to extend the timeline for any forthcoming leadership election so that the he can seek the seat in parliament he would need to run for the leadership.

The U.K. economy grew 0.6% in the first quarter, according to preliminary figures from the Office for National Statistics on Thursday. It matches what economists polled by Reuters expected for the January-March period, and follows revised growth of 0.2% in the fourth quarter. "Growth picked up in the first quarter of the year, led by broad-based increases across the services sector," Liz McKeown, director of Economic Statistics at the ONS, commented on X on Thursday.Production also grew slightly, she added, and while construction returned to growth, that was only partly reversing weakness at the end of last year.

Apparel retailers could see an up to $13 billion annual boost in spending because of GLP-1 drugs, according to an estimate by equity research firm Bernstein.

LONDON — European stocks are expected to open higher Thursday as investors keep an eye on political developments in the U.K. and U.S. President Donald Trump's trip to China. The U.K.'s FTSE index is seen opening 0.3% higher, Germany's DAX and France's CAC 40 both up 0.5%, respectively, and Italy's FTSE MIB up 0.3%, according to data from IG. Earnings come from National Grid, 3i Group, Aviva and Telefonica. Data releases include U.K. first-quarter GDP data.

BEIJING — U.S. President Donald Trump met Chinese President Xi Jinping in Beijing on Thursday morning for the start of a high-stakes summit that runs through Friday. Iran, Taiwan and artificial intelligence are among the many topics the two sides are expected to discuss, on top of tariffs and rare earths. The last time a sitting U.S. president visited China was in 2017. On Thursday, Xi walked down the stairs of the Great Hall of the People in Beijing to shake hands with Trump, according to official broadcast footage. The U.S. president first shook hands with Chinese officials, followed by Xi greeting the U.S. delegation.

Oil was struggling for direction Thursday as traders weighed OPEC's lower demand outlook for this year, while the International Energy Agency flagged greater volatility ahead. International benchmark Brent crude futures for July were down 0.21% at $105.42 a barrel, while U.S. West Texas Intermediate futures for June fell 0.16% at $100.87 per barrel. Both had started the day marginally higher. OPEC cut its demand growth estimates for 2026 to about 1.2 million barrels per day, from 1.4 million bpd previously, in its latest monthly update. OPEC production fell by 1.7 million bpd in April and has declined more than 30%, or 9.7 million bpd since the start of the Iran war in late February.

Cisco shares soared in extended trading on Wednesday after the networking company issued results and guidance that topped Wall Street's projections. Read more: cnb.cx/4ubo9FV

Homebuyers appear to be getting used to the new normal of higher mortgage rates, even the highest in over a month. Buyer demand for mortgages helped to push total mortgage application volume up 1.7% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. CNBC's Diana Olick explains. Read more: cnb.cx/4dDdzS1

Asia-Pacific markets traded mixed Thursday as investors look to a high-stakes meeting between U.S. President Donald Trump and his Chinese counterpart Xi Jinping for clues on the future of U.S.-China ties and global trade. Trump landed in Beijing Wednesday for the closely watched summit, accompanied by a group of U.S. executives, including Tesla CEO Elon Musk and Nvidia boss Jensen Huang. Japan's Nikkei 225 rose 0.27%, while the Topix slid 0.23%. South Korea's Kospi added 0.38%, while the small-cap Kosdaq climbed 1.31%.

TOMORROW: Treasury Secretary Scott Bessent joins "Squawk Box" to discuss President Donald Trump's visit to China. Tune in to CNBC on Thursday at 6 a.m. ET to watch.