StockMarketWire.com - UK stocks opened higher on Tuesday as investors held out hope that ongoing high-level talks between the US and China would produce a cooling of trade tensions.

At 0845, the benchmark FTSE 100 index was up 38.45 points, or 0.6%, at 6.849.33.

Supermarket chain Morrisons fell 2.1% as a 4.0% rise in sales during the crucial Christmas trading period failed to inspire investors.

Power utility National Grid added 1.0% on news that it had reached a 'satisfactory agreement' in contract negotiations with two Massachusetts gas unions over employment terms and conditions.

Pub group Greene King advanced 4.1% after robust Christmas trading inspired increased confidence in the company's full-year outlook.

Footwear retailer Footasylum, however, tumbled 15%, as it warned its earnings would be toward the lower end of market expectations.

The company also said it planned to cut costs to improve shrinking margins.

Lifestyle fashion brand Joules was fairing better on the high street, gaining 4.6%, as it maintained its outlook on full-year profits amid strong Christmas sales growth.

Building materials supplier SIG reversed 4.5% on announcing that it expected to report a fall in annual profit, as revenue weakened in the second half.

Storage company Safestore rose 4.1% after it more than doubled its annual profit, as it boosted sales in both London and Paris and enjoyed a rise in the value of its investment properties.

Recruitment agency and training group Staffline shed 5.7%, as it warned one-off costs would offset an 18% rise in annual revenue and push up its debt levels.

Shipping services group Clarkson gained 3.7% after reassuring investors that it saw its full-year results would be in line with expectations. Story provided by StockMarketWire.com