- The FTSE 100 continued to enjoy gains following a temporary truce in the US-China trade war over the weekend, which could boost growth and support demand for resources.

Saudi Arabia and Russia vowing to work together in the oil market also helped Brent crude oil rise 3.3% to $61.42.

However, by the close, the blue-chip index had surrendered some of its earlier gains to trade 1.2% higher at 7,062.41.

In Europe and the US, investors were also in a positive mood. Germany's DAX led the way, rallying 2% to 11,486 while the Nasdaq on Wall Street sparked 1.6% higher to 7,449 at around 4pm UK time.


Shares in pharma giant GlaxoSmithKline fell 7.9% to £14.93 following its decision to sell Horlicks and other consumer healthcare nutrition brands for £3.1bn. The company also agreed to acquire oncology-focused biopharma company TESARO for £4bn.

London Southend airport owner Stobart Group fell 10.5% to 176.9p after it decided to cut its dividend to conserve cash for investments in its aviation and energy divisions.

Plastic products manufacturer RPC Group fell 6.7% to 669p on news that a takeover pursuit of the company had become a one-horse race.

Bain Capital was no longer interested in a tie-up, RPC said, while an extension had been granted to Apollo Global Management to decide whether it wanted to lodge a firm bid.

AstraZeneca gained 0.9% to £61.69 as it completed a deal to sell rights to acid reflux and arthritis treatments to Grunenthal for a combined $815m.

Engineering services group Babcock International ticked up 0.3% to 569.8p on news that a joint venture with UGL had been awarded a new A$1.5bn (£866m) contract by the Australian Defence Force.

Spirax-Sarco Engineering gained 3.8% to £63.65 on announcing that it had sold German industrial air humidification equipment supplier HygroMatik to Carel Industries for €59.0m.

Power generation company Drax fell 1.7% to 384p despite favourably tweaking the terms of a deal to buy pumped storage, hydro and gas-fired generation assets from Spain's Iberdrola.


Convenience store retailer McColl's Retail tumbled 29.4% to 83.9p after it downgraded earnings expectations for both the year just-ended and the current financial year, citing supplier disruptions, higher labor costs and 'consumer uncertainty'.

Medical diagnostics kit supplier Omega Diagnostics shed 15.6% to 14.1p as it reported a rise in first-half profit that was entirely driven by asset-sale proceeds. Revenue from continuing operations slipped 7%.

Shield Therapeutics gained 3.6% to 35p on news that the US Food and Drug Administration had accepted for review a new drug application for its lead iron deficiency product.

Story provided by