Source: Sharecast
At 0845 BST, the FTSE 100 was up 0.6% at 8,772.73.
Trump announced on Sunday that the imposition of a 50% tariff on goods from the EU to the US will be delayed from 1 June until 9 July to allow for talks.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "A mood of cautious relief is spreading after the long weekend, amid hopes for more fruitful trade negotiations between the United States and its global partners. There are no post bank holiday blues for the London market, with the Footsie in striking distance of the record high reached in February. More positive vibes are pulsing about the outlook for the global economy, with hopes that more scores can be etched on the doors of trade talks.
"US futures point to a higher open on indices, as optimism spreads after the holiday break. Trump once again has pressed the pause button, this time on proposed 50% tariffs on imports from the European Union, which caused nervousness at the end of last week. The Dax and CAC 40 had already gained ground on Monday, after the extension to talks was announced with the European Commission.
"Still, plenty of uncertainty remains about the exact outcome in the raft of ongoing negotiations with nations around the world. Japan is also holding out for a deal to eliminate tariffs, with the proposals for a huge US-Japanese joint wealth fund looking set to be a potential bargaining chip in the talks. The idea floated is for the fund’s structure to potentially be a blueprint for other countries to create closer investment ties with the US, but it seems to be very early days for the concept."
In equity markets, specialty chemicals company Elementis surged to the top of the FTSE 250 after saying it had sold its Talc business to Italy’s IMI Fabi for an enterprise value of $121m and would start a £50m share buyback.
The sale comes as Elementis repositions itself as a pure-play specialty chemicals operation focused on value-added additives in the high-margin coatings and personal care markets.
Jupiter Fund Management also shot higher after an upgrade to ‘add’ from ‘hold’ at Peel Hunt, which said the company’s planned cost savings offer a "welcome boost" to profitability.
Premier Inn owner Whitbread advanced as it announced the appointment of Christine Hodgson as its new chair effective 1 September, succeeding Adam Crozier, who will retire from the board on the same date.
Burberry was boosted by an upgrade to ‘equalweight’ from ‘underweight’ at Barclays, which said that its key concerns around the dilution of the brand equity now appear less likely to materialise.
Premier Foods was knocked lower by a downgrade to ‘sector perform’ from ‘outperform’ at RBC Capital Markets. It said Premier has done an outstanding job resolving a number of existential problems and has evolved a reliable business model.
"This has taken a while, but we feel that the share price now reflects these virtues, and so downgrade our rating to sector perform."
Fresnillo, Hochschild Mining and Endeavour all lost their shine as gold prices fell.
Market Movers
FTSE 100 (UKX) 8,772.73 0.63%
FTSE 250 (MCX) 20,875.39 0.80%
techMARK (TASX) 4,806.40 1.04%
FTSE 100 - Risers
International Consolidated Airlines Group SA (CDI) (IAG) 329.70p 3.10%
Melrose Industries (MRO) 464.90p 2.99%
Intermediate Capital Group (ICG) 2,014.00p 2.86%
Rolls-Royce Holdings (RR.) 855.60p 2.37%
Schroders (SDR) 348.20p 2.11%
Ashtead Group (AHT) 4,306.00p 2.11%
London Stock Exchange Group (LSEG) 11,765.00p 2.04%
St James's Place (STJ) 1,109.00p 2.02%
Smiths Group (SMIN) 2,174.00p 1.87%
BAE Systems (BA.) 1,877.50p 1.87%
FTSE 100 - Fallers
Fresnillo (FRES) 1,100.00p -2.91%
Rio Tinto (RIO) 4,504.50p -1.27%
Centrica (CNA) 156.95p -1.04%
British American Tobacco (BATS) 3,309.00p -0.78%
Severn Trent (SVT) 2,726.00p -0.47%
Reckitt Benckiser Group (RKT) 4,906.00p -0.47%
Coca-Cola HBC AG (CDI) (CCH) 3,990.00p -0.45%
SSE (SSE) 1,747.00p -0.29%
Next (NXT) 12,860.00p -0.27%
Diageo (DGE) 2,017.00p -0.20%
FTSE 250 - Risers
Elementis (ELM) 143.20p 10.15%
Jupiter Fund Management (JUP) 88.20p 7.56%
Rank Group (RNK) 127.20p 4.61%
Oxford Nanopore Technologies (ONT) 131.90p 4.60%
Bridgepoint Group (Reg S) (BPT) 281.00p 4.31%
Trustpilot Group (TRST) 238.00p 3.30%
Close Brothers Group (CBG) 345.60p 3.29%
AO World (AO.) 108.00p 3.25%
Aston Martin Lagonda Global Holdings (AML) 77.60p 3.12%
Wizz Air Holdings (WIZZ) 1,623.00p 2.92%
FTSE 250 - Fallers
Hochschild Mining (HOC) 275.60p -4.83%
Premier Foods (PFD) 203.50p -4.24%
Endeavour Mining (EDV) 2,198.00p -2.74%
BlackRock World Mining Trust (BRWM) 488.00p -0.91%
Direct Line Insurance Group (DLG) 299.80p -0.73%
Johnson Matthey (JMAT) 1,719.00p -0.64%
JPMorgan Emerging Markets Inv Trust (JMG) 108.40p -0.55%
Ruffer Investment Company Ltd Red PTG Pref Shares (RICA) 278.50p -0.54%
Patria Private Equity Trust (PPET) 565.00p -0.53%
Pennon Group (PNN) 511.50p -0.49%