Relief leads to FTSE nudging above 7,000

Market report Emma Newlands

More than £28 billion has been added to the value of London’s blue-chip stocks as investors were buoyed by signs that US and China would avoid a trade war.

The FTSE 100 Index broke its losing streak and climbed above the 7,000 mark after the two nations said they were open to negotiation.

It comes just days after US president Donald Trump signed an order paving the way for the imposition of wide-ranging tariffs on imports from China worth $60 billion (£43bn).

Such was the relief in London that the toptier closed up 111.45 points to 7,000.14, with Ferguson emerging as the biggest riser after the plumbing and heating specialist unveiled a £1bn special dividend.

On the currency markets, the pound dropped back as cooling tensions between America and China caused the US dollar to strengthen. Sterling was 0.5 per cent lower versus the US dollar at $1.415. Against the euro, the UK currency dropped 0.2 per cent to €1.140.

In UK stocks, AG Barr marched higher after the soft drinks maker hiked investor payouts on the back of a sparkling annual performance.

It came despite the impact of the weak pound, which has driven up the costs of sugar and packaging that are priced in euros, and headwinds caused by economic volatility and Brexit uncertainty. Shares in AG Barr rose 11p to 626p.

The biggest risers on the FTSE 100 Index included Ferguson up 344p to 5,478p, and Scottish Mortgage Investment Trust up 15p to 455p. The biggest fallers included Next down 78p to 4,797p and Randgold Resources down 80p to 5,916p, British drugs giant Glaxosmithkline has agreed a $13 billion (£9.2bn) deal to buy Novartis’ stake in its consumer healthcare joint venture. The co-founder of the fashion retailer is stepping down, saying he plans to devote more time to other business and charitable interests.