Source: Sharecast
The FTSE 100 was up 0.7% at 8,782.59.
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.
Russ Mould, investment director at AJ Bell, said: "The latest U-turn on tariffs from the Trump administration gave European markets a boost yesterday and have helped UK stocks return from the Bank Holiday with pep in their step.
"The market is beginning to come to the view that the US trade policy’s bark is worse than its bite as an initial threat of 50% tariffs on EU goods by the beginning of next month has been pushed back until 9 July to allow time for talks to continue.
"US markets were also closed for Memorial Day on Monday and futures markets imply a recovery from Friday’s losses when trading begins on Wall Street later. The dollar ticked higher and the 30-year Treasury yield slipped back below the 5% mark as risk appetite was restored, at least to some extent.
"Tomorrow all eyes are likely to turn to Nvidia’s results. Its influence over wider markets may have reduced somewhat from the early stages of the AI boom but this remains one of the most significant corporate earnings announcements.
"A better-than-expected number and outlook may help sustain any upturn in fortunes for US shares but the reverse would likely put them on the back foot."
On home shores, investors were mulling the latest survey from the Confederation of British Industry, which showed that sentiment fell in May at the sharpest rate in five years.
The CBI's quarterly gauge of business sentiment fell to a net balance of -29% from -19% in February.
Meanwhile, the year-on-year retail sales balance dropped to -27 in May from -8% in April, while the measure for expected sales in June declined to -37.
CBI lead economist Ben Jones said: "This was a fairly downbeat survey and highlights some of the challenges facing the retail and wider distribution sector. In contrast to other recent retail data, this survey suggests parts of the sector are still struggling with fragile consumer demand, though online sales seem to be holding up better.
"Firms are also feeling the impact of higher NICs and the National Living Wage increase. Our quarterly survey suggests that retailers are cutting back on hiring, scaling back investment and expect to increase selling prices at the fastest pace for over a year.
"With the Spending Review on the horizon, the government has an opportunity to kickstart growth and incentivise investment, whether by reforming business rates, simplifying skills investment through the Apprenticeship Levy reform or expanding the Made Smarter Programme, further enabling digital adoption."
In equity markets, defence stocks were on the rise, with Melrose, BAE Systems and Rolls-Royce all up amid expectations that NATO members will agree to raise defence spending at a summit next month.
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.
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.
Fresnillo, Hochschild and Endeavour all lost their shine as gold prices fell.
Market Movers
FTSE 100 (UKX) 8,782.59 0.74%
FTSE 250 (MCX) 20,930.00 1.07%
techMARK (TASX) 4,819.48 1.32%
FTSE 100 - Risers
International Consolidated Airlines Group SA (CDI) (IAG) 333.60p 4.32%
Melrose Industries (MRO) 467.30p 3.52%
Ashtead Group (AHT) 4,330.00p 2.68%
Intermediate Capital Group (ICG) 2,010.00p 2.66%
BAE Systems (BA.) 1,890.00p 2.55%
Spirax Group (SPX) 5,840.00p 2.19%
St James's Place (STJ) 1,110.50p 2.16%
JD Sports Fashion (JD.) 84.36p 2.16%
SEGRO (SGRO) 667.00p 1.93%
GSK (GSK) 1,451.50p 1.82%
FTSE 100 - Fallers
Fresnillo (FRES) 1,110.00p -2.03%
Rio Tinto (RIO) 4,502.00p -1.33%
Centrica (CNA) 156.55p -1.29%
Games Workshop Group (GAW) 15,250.00p -1.17%
Airtel Africa (AAF) 178.10p -0.84%
Pearson (PSON) 1,202.50p -0.78%
Rightmove (RMV) 757.40p -0.55%
Beazley (BEZ) 921.00p -0.38%
Reckitt Benckiser Group (RKT) 4,912.00p -0.34%
Hiscox Limited (DI) (HSX) 1,256.00p -0.16%
FTSE 250 - Risers
Elementis (ELM) 145.60p 12.00%
Jupiter Fund Management (JUP) 89.50p 9.15%
W.A.G Payment Solutions (WPS) 65.80p 7.52%
Bridgepoint Group (Reg S) (BPT) 285.20p 5.86%
Bodycote (BOY) 556.00p 5.60%
Vistry Group (VTY) 619.60p 4.98%
Mobico Group (MCG) 29.46p 4.69%
QinetiQ Group (QQ.) 487.80p 4.63%
Morgan Advanced Materials (MGAM) 219.00p 4.29%
Frasers Group (FRAS) 725.00p 4.24%
FTSE 250 - Fallers
Hochschild Mining (HOC) 274.00p -5.39%
Patria Private Equity Trust (PPET) 554.00p -2.46%
Ferrexpo (FXPO) 58.90p -2.32%
Foresight Solar Fund Limited (FSFL) 75.10p -2.21%
Pacific Horizon Inv Trust (PHI) 585.00p -2.01%
Fidelity China Special Situations (FCSS) 246.50p -1.79%
Johnson Matthey (JMAT) 1,699.00p -1.79%
Endeavour Mining (EDV) 2,224.00p -1.59%
Syncona Limited NPV (SYNC) 84.70p -1.51%
Auction Technology Group (ATG) 451.00p -1.42%