Positive news from China buoys Footsie

Positive news from China helped the FTSE 100 close the day up as a tariff cut pledge and signs that the coronavirus outbreak is being contained to the country’s mainland lifted investors’ spirits.

Chinese officials said they will cut tariffs by 50 per cent on £58 billion of goods from 14 February, a month after the US and China signed a pledge for a truce on their trade war.

According to the US, the levies hit more than 1,700 items in September, with seafood, poultry and soybeans suffering hardest.

The day’s events saw the FTSE 100 close up 22.31 points at 7,504.79.

David Madden, CMC Markets analyst, said: “Traders jumped on this story as it shows the trading relationship between the two sides is taking a positive step. Beijing is under tremendous pressure on account of the worsening health situation, so the promise to lower tariffs is a convenient way to boost sentiment in the markets.”

The calming over the coronavirus outbreak also helped investors, with market watchers seeming confident that the spread was being contained.

Compass Group shareholders were happy with progress at the catering business as shares closed up 51.5p, or 2.7 per cent, at 1,958p. Bosses said revenues in the first quarter were up 5.3 per cent, although the business will take a £61m hit from the weak pound.

Shares in Imperial Brands closed up 25.8p at 1,847.4p after the tobacco firm’s new chairwoman, Therese Esperdy, bought shares worth almost £450,000.