US trade talk hopes help Footsie gain

London’s blue-chip index rose as investors were buoyedonindicationstheusandchinaaremaking progress in trade talks. The FTSE 100 closed up 85.40 points, or 1.27 per cent, at 6,806.94.

Fiona Cincotta, senior market analyst at City Index, said: “Signs that the Sino-us trade talks are making progress helped markets across the board. This is just the kind of news markets needed to hear to calm other ongoing tensions the abandoned Brexit vote in the UK, protracted protests in France and swelling fears of an economic slowdown in the US.”

Oil prices were also lifted on expectations of a Us-china trade deal, with a barrel of Brent crude trading up 1.37 per cent at $60.58.

Meanwhile, the pound slipped on news that Prime Minister Theresa May could face a vote of no confidence.

WPP is axing 3,500 jobs worldwide under plans to slash costs by £275 million a year as it looks to turn around its fortunes. The move will largely affect administration roles as the advertising giant looks to merge 100 offices and shut a further 80 sites. WPP shares closed up 39p to 844p.

Equipment rental company Ashtead said it expects to beat its full-year targets after positive growth in the US during the first half. Rental revenue was up 18 per cent to £2.07 billion and Ashtead shares rose 57.50p to 1,664p.

Meanwhile, troubled retailer Carpetright rose despite unveiling stinging losses for a period during which it underwent a dramatic store closure programme. Shares closed up 0.95p at 17.3p on hopes that the worst is now behind it.