Us-china talks hope sees FTSE rise

The FTSE 100 started to bounce back as investors held out hope for trade talks between the US and China later this week.

The UK’S blue chip index ended the day up 0.4 per cent at 7,591.26. It marked a slight rebound after a rollercoaster ride for stocks a week earlier, when the FTSE 100 fell around 0.8 per cent amid concerns that Turkey’s financial woes could impact Europe.

David Madden, a market analyst at CMC Markets UK, said: “Equity markets are buoyant ahead of the Us-china trade talks which commence on Wednesday. The US and China remain locked in a trade spat and, given the slump in the Chinese stock market and the renminbi in recent months, you could argue the US has the upper hand.”

Mining stocks were in demand due to optimism over the meeting, with Rio Tinto up 11.5p at 3,717.5p and Anglo American up 20p at 1,554p.

The pound was also trading higher, up 0.2 per cent against the euro at €1.115 and 0.05 per cent versus the US dollar at $1.276.

In UK stocks, Countrywide fell 0.12p to 14.48p as the estate agent shelved plans for bosses to pocket millions after meeting top investors.

Meanwhile, Mulberry shares sunk nearly 30 per cent to 400p after it warned profits could take a £3 million hit following the collapse of House of Fraser.

The biggest risers on the FTSE 100 included Evraz, up 13.1p at 479.7p, and Melrose Industries, up 5.7p at 226.8p. The biggest fallers included Sage Group, down 46.6p at 619.2p, and Kingfisher, down 3.1p at 270.2p.