- Hopes of progress in trade talks between the US and China are supporting strong gains for the FTSE 100 on Tuesday. By midday the index was up 1.1% to 6,882.98. Germany's DAX was up 0.8%.

US futures markets suggest Wall Street will build on yesterday's gains when trading resumes later on


Supermarket chain Morrisons fell 3% to 213.2p as a 4.0% rise in sales during the crucial Christmas trading period failed to inspire investors.

Power utility National Grid added 0.9% to 785.5p 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 6% to 586.2p after robust Christmas trading inspired increased confidence in the company's full-year outlook.

Building materials supplier SIG reversed 7.5% to 107.9p on announcing that it expected to report a fall in annual profit, as revenue weakened in the second half.


Footwear retailer Footasylum, tumbled 18% to 26.6p, 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 3.1% to 252p, as it maintained its outlook on full-year profits amid strong Christmas sales growth.

Storage company Safestore rose 1.8% to 537p 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 8% to £11.50, 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 2.9% to £23.15 after reassuring investors that it saw its full-year results would be in line with expectations.

Story provided by