StockMarketWire.com - UK stocks opened 1% higher on Tuesday after the US and China said they'd made progress in trade talks and software group Aveva announced a bumper $5bn (£3.8bn) takeover deal.

At 0819, the benchmark FTSE 100 index was up 60.59 points at 6,165.32.

Industrial software supplier Aveva rose 2.5% to £44.4095 as investors embraced news that it had agreed terms to acquire California-based rival OSIsoft for $5bn, including debt.

Aveva said it planned to raise around $3.5bn from a share issue to help fund the deal.

Pharmaceutical company AstraZeneca added 0.9% to £86.89 on announcing that the first participants had been dosed in a first-phase trial of a potential antibody-based treatment for Covid-19.

Marine service provider James Fisher and Sons dropped 5.2% to £11.66, having cut its dividend after reporting a plunge in first-half profit owing to a sharp decline in energy prices and the impact of the Covid-19 pandemic.

Furniture retailer DFS Furniture jumped 15% to 172.5p on announcing that recent trading had been stronger than expected, as consumers spend more on their homes during the pandemic.

Still, DFS said significant uncertainty related to Covid-19 and the potential impact of Brexit made it 'exceptionally difficult to assess the outlook beyond the short term'.

Iron ore producer Ferrexpo was broadly flat at 190.9p as it appointed existing director Lucio Genovese as its new chairman, to replace the outgoing Steve Lucas.

Virtual reality content creator MelodyVR agreed to acquire Rhapsody International, which trades as Napster, in a reverse takeover deal.

MelodyVR would pay around $26.3m to the vendors of Napster, comprising $15.0m in cash and the issuance of about 200m MelodyVR shares.

Marketing group Next 15 Communications surged 18% to 434p, having boosted its first-half adjusted profit 16% and forecast a full-year result 'materially higher' than current market expectations.

Next 15 Communications also said it was 'reviewing the exact timing' of a resumption of dividend payments.

Defence contractor TP gained 5.3% to 7p on the back of news that it had acquired air-space management group Osprey Consulting Services for up to £3.5m.

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