The London markets rose as investor sentiment was buoyed as trade tensions between the US and China appeared to ease.
By Press Association City Staff
May 21 2019 4:48 PM
The London markets rose as investor sentiment was buoyed as trade tensions between the US and China appeared to ease.
The FTSE 100 closed the day up 18.04 points at 7,328.92 points.
Stocks across Europe rallied on the back of news that the US has granted Huawei a 90-day extension before its ban will be implemented.
David Madden, market analyst at CMC Markets UK, said: “This is seen as a sign the US administration don’t want to turn up the heat on China just yet, but the ball is in Beijing’s court.
“The trade standoff is still very much alive, but this appears to be a slight reduction in hostilities, and some traders are taking the opportunity to snap up equities.”
Optimism spread across the continent, as European stocks took the move as a positive signal regarding the future of the long-running trade dispute.
The German Dax jumped by 0.85% and the French CAC rose by 0.5%.
The pound jumped higher on the back of Theresa May’s announcement that MPs will be offered a vote on a second referendum.
Sterling had slumped to its lowest since January earlier on Tuesday, but recovered after the Prime Minister offered the possible Brexit reprieve.
The pound rose 0.08% to 1.273 versus the US dollar and increased 0.12% to 1.141 versus the euro.
In stocks, high street stalwart WH Smith rose marginally after its boss Stephen Clarke revealed plans to step down at the end of October after six years at the helm of the retailer.
He will be replaced as group chief executive on November 1 by Carl Cowling, who is currently managing director of the group’s high street arm.
