StockMarketWire.com - UK stocks opened stronger on Wednesday on renewed hopes of a US-China trade truce, though the UK political outlook was further clouded by the emergence of an internal Tory leadership challenge against Theresa May.

At 0858, the benchmark FTSE 100 was up 28.21 points, or 0.4%, at 6.835.15.

Fashion retailer Superdry plunged 32% after it issued yet another profit warning, blaming a continuation of unseasonably warm weather crimping demand for jackets and sweats.

Superdry also admitted to a lack of innovation in its clothing range.

Engine maker Rolls-Royce was having a brighter day. It gained 2.6% on announcing that it expected its profit and cash flow for 2018 to be at the upper end of its previous guidance.

Supermarket chain J Sainsbury fell 3.3% after it and its takeover target Asda called for a judicial review of the UK competition regulator's investigation of their proposed tie-up.

The pair complained that they needed more time to meet the regulator's demands.

Phone retailer Dixons Carphone slumped 9.7% as it cut its dividend and launched a turnaround plan targeting cost savings of £200m, after swinging to a first-half loss on the back of asset writedowns.

British American Tobacco gained 1.7% as it stuck to its full-year forecast to exceed high single-digit growth in adjusted earnings per share, despite currency headwinds.

Oil services company Wood Group slumped 8.4%, even as it forecast at least 10% growth in annual revenue, and earnings in line with its expectations.

Hard landscaping manufacturer Marshalls gained 4.5% after it announced that it had acquired concrete brick maker Edenhall Holdings for up to £17.2m, while upgrading its annual guidance.

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