Friday 27 December 2019 10:10 am

FTSE 100 rises on positivity over US-China trade deal

The FTSE 100 rose for the eleventh straight session this morning, as traders were cheered by positive signs over a US-China trade deal.

London’s main index, which is on its best run in three years, adding 0.4 per cent. Miners provided the biggest boost, as Glencore and BHP rose about two per cent each.

Read more: Oil prices rise on renewed hopes of US-China trade deal

Returning from the Christmas and Boxing Day break, traders said comments from Beijing that it as in close contact with Washington over an initial trade agreement. 

It came shortly after US President Donald Trump talked up a signing ceremony for the recently struck phase one trade deal.

HSBC was among the major boosts, while oil majors Shell and BP rose nearly one per cent each as crude prices hit a three-month high.

UK markets are ushering in an upbeat end to the year, as worries around major economic events such as the US-China trade war and Brexit have receded.

This has increased investors’ risk appetite towards equities, with the blue-chip bourse on course for its best month since April 2018 and its best yearly performance since 2016.

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Nevertheless, it is those two economic factors that look set to dominate traders’ headlines again next year.

“A lot of excellent news is now priced into financial markets across the globe, but top picking remains a dangerous game; only for the brave and deep-pocketed,” OANDA analyst Jeffrey Halley said.

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