Stocks rise as concerns over trade subside

European markets gained as global trade tensions eased back a little.

The FTSE 100 ended the day up 21.3 points at 7,636.93 points, while the French CAC 40 and German DAX closed higher by 0.9 per cent and 1 per cent respectively.

David Madden, market analyst at CMC Markets, said: “The US and China are not any closer to resolving the trade spat, but the language from Washington DC is certainty less aggressive than it has been in recent weeks, and this has encouraged traders to snap up equities. The pound also spiked against the US dollar as investors cheered an upward revision to UK growth in the first quarter.

BAE Systems continued to rise on news that the British defence giant won a £20 billion contract to build a new fleet of Australian warships under a 30-year contract. Shares were up 14.8p at 646.8p.

Reach – formerly known as Trinity Mirror – rose 0.5p to 76.5p as the Daily Record publisher said in a trading update for the 26 weeks to 1 July that total group revenue is expected to grow by 11 per cent. That rise reflects the acquisition of Northern & Shell, the company behind the Daily Express and Daily Star.

Meanwhile Amigo, the lender which provides finance to individuals with poor credit histories, said its shares will be listed at 275p each when it floats on the London Stock Exchange.

The company provides loans of between £500 and £10,000 for up to a year at a rate of over 40 per cent, with repayments guaranteed by someone connected to the customer, such as a friend or family member.