Market gains as trade war fears recede

The Footsie ended the week on a positive note as concerns over a potential trade war between the US and China eased.

The FTSE 100 index closed up 24.38 points at 7,164.14 although it still ended the week lower than when it started. David Madden, analyst at CMC Markets UK, said: “The fear that the US and China would engage in a trade war weighed on stocks during the week, but that uncertainty has lifted for now. As it is potentially going to be a Us-instigated trade war, Euro- pean dealers are taking their cues from US indices.”

Pub chain JD Wetherspoon posted a rise in half-year profit, but warned that sales will be lower over the next six months due to rising costs. The group posted a 36.1 per cent rise in half-year pre-tax profits to £54.3 million, with revenue rising 3.6 per cent to £830.4m. Shares closed down 81p at 1.214p.

Bargain Booze owner Conviviality said it is mulling going to investors for more cash after the firm revealed that it owes the taxman £30m and issued another profit warning. Shares remained suspended at 101.2p.

Outsourcer Mitie said that its turnaround plan remains on track and it will deliver higher cost savings than previously thought. The group, which has been under pressure following a string of profit warnings, said that its transformation plan will now see it trim costs by £50m a year by 2020. Shares closed at 156.3p, down 4.9p.