Miners lead blue chips higher after Trump’s Nafta agreement

A BREAKTHROUGH in Donald Trump’s plan to revamp the North American Free Trade Agreement boosted the FTSE 100 as attention turned to his attempt to strong-arm Canada into striking a deal.

The US president and Mexico agreed on new terms for a modernised Nafta deal, which was first inked by the two countries and Canada in 1994. Mr Trump, who has been a fierce critic of Nafta, said that the new agreement was “much more fair”.

He urged Canada to return to the negotiating table and hinted that tariffs could be put on cars arriving from its neighbour without its co-operation.

The FTSE 100 enjoyed a delayed boost following the bank holiday from cooling tensions on one front in the US president’s trade war.

Following on from the strong gains made in the US and Europe late in trading the previous day, the index outperformed its rivals, rallying 39.73 points to 7,617.22.

The dollar weakening on the new deal lifted metal prices and the FTSE 100’s mining stocks. Anglo

American led the sector higher, jumping 51.4p to £16.26, while BHP Billiton rallied 47p to £17.08.

Elsewhere, Primark owner Associated British

Foods was the biggest FTSE 100 faller after a fire broke out at its flagship store in Belfast.

The company was also knocked by Citigroup warning investors on the impact of the recent sterling slump on the budget retailer. After Citi trimmed its price target and earnings estimates for the company, ABF dropped 74p to £22.86, its lowest level since 2013.

FTSE 100 engineering giant Melrose advanced 3.9p to 233.9p after The Sunday Telegraph reported that it will launch a £1.8bn sale of GKN’S powder metallurgy division alongside its interim results next month. Its chairman Chris Miller had argued that it would “not be appropriate” to sell the division early in the turnaround but it is understood that strong interest from prospective bidders prompted the rethink. Embattled estate agency

Countrywide dropped to a fresh record low as shareholders gave the green light to a £140m emergency cash call at an extraordinary general meeting. Its shares have now plunged 74pc since announcing the fundraising, which will be used to slash its £200m debt pile. Countrywide tumbled a further 1.5p to 13.4p, a record low close.

NMC Health climbed 136p to £39.48 after the healthcare provider dismissed a report claiming that it was readying a move into the Indian market. The FTSE 100 company insisted that it would focus its investment on the Gulf states.