Positive turn in US-China talks give shares lift

Top shares gained ground in London yesterday as the global mood lightened thanks to apparent progress in US-Chinese relations.

The FTSE 100 closed up 69.61 points, or 0.98%, at 7,184.32.

It was just behind European peers as the German Dax rose 1.18% and the French Cac climbed 1.51%.

David Madden, market analyst at CMC Markets UK, said: “Equity markets in Europe are in positive territory as US-China trading relations have taken a positive turn. The Chinese ministry for commerce made it clear they are keen to strike a deal but at the same time they will not be pushed around.

“Beijing admitted further trade tensions will be harmful to everyone, and foreign firms operating in China won’t come under pressure.

“At the same time, the country is willing to flex its financial muscles to inflict pain on the US should it see fit.”

The international-focused FTSE also benefited from a flat day for the pound, as the currency dipped 0.1% to $1.220. It was up 0.17% on the euro at 1.104.

Oil prices recovered from a dip caused by concerns over global economic growth, boosted by lower US inventories.

A barrel of Brent Crude oil was trading 0.65% higher at $60.81.

Biggest risers on the FTSE 100 were Smiths Group up 80p to 1,638.5p, Ocado group up 53.5p to 1,281.5p and Ashtead Group up 90p to 2,223p.

Biggest fallers were Micro Focus down 504p to 1,051.4p, NMC Health down 43p to 2,328p and Intercontinental Hotels Group down 40p to 5,052p.