Source: Sharecast
The FTSE 100 was up 0.9% at 9,146.62, having hit a new high of 9,158.21.
Sentiment got a boost after the US announced a trade deal with Japan that includes a 15% tariff rate - rather than the 25% threatened - and $550bn in investments.
Meanwhile, there were reports the EU is close to agreeing a similar trade deal of 15% tariffs on imports from the bloc.
Neil Wilson, UK investor strategist at Saxo Markets, said: "Hopeful noises on trade with the EU and the US heading towards a Japan-style 15% tariff rate is enough to support the risk-on mood."
On home shores, a preliminary survey showed that private sector growth slowed in July, while job cuts accelerated.
The S&P Global flash PMI composite output index - which measures activity in both the services and manufacturing sectors - fell to a two-month low of 51.0 from 52.0 in June. This was below the 51.8 expected by economists but above the 50.0 mark that separates contraction from expansion.
The flash manufacturing output index printed at 50.0 in July, up from 47.0 in June and hitting a nine-month high.
However, the services PMI business activity index fell to 51.2 this month from 52.8 in June, hitting a two-month low.
The survey also showed that the rate of job shedding accelerated to its fastest since February amid steeper reductions in both sectors.
Chris Williamson, chief business economist at S&P Global Market Intelligence, said: "The flash UK PMI survey for July shows the economy struggling to expand as we move into the second half of the year. Output growth weakened to a pace indicative of the economy growing at a mere 0.1% quarterly rate, with risks tilted to the downside in the coming months.
"The sluggish output growth reported in July reflected headwinds of deteriorating order books, subdued business confidence and rising costs, all of which were widely linked to the ongoing impact of the policy changes announced in last autumn’s Budget and the broader destabilising effect of geopolitical uncertainty.
"Particularly worrying is the sustained impact of the Budget measures on employment. Higher staffing costs have exacerbated firms’ existing concerns over payroll numbers in the current environment of weak demand, resulting in another month of sharply reduced headcounts in July.
"The weak growth trajectory and sustained culling of jobs will add to pressure on the Bank of England to cut rates again at its next policy meeting in August. It seems likely that the disappointing growth and labour market trends will increasingly dominate the inflation forecasting narrative, encouraging policymakers to ‘look through’ the recent rise in price pressures and instead focus on helping to revive growth."
In equity markets, Reckitt jumped to the top of the FTSE 100 as it upgraded the full-year revenue growth target for its core brands, posting a better-than-expected jump in second-quarter like-for-like sales.
The consumer goods giant is now targeting LFL net revenue growth above 4% in Core Reckitt for FY25, up from a previous target of 3% to 4% growth. The core segment includes brands such as Nurofen and Dettol.
BT Group was also in the black as it said reported pre-tax profit fell 10% in the three months to 30 June, but insisted it was on track to deliver its targets for "this year, next year and the end of the decade".
Airtel Africa surged as it said EBITDA grew by 29.8% to $679m in the first quarter, with revenues up 24.9%.
Lloyds reversed earlier losses as it backed its outlook for the year, lifted its dividend and reported a jump in first-half profits.
Howden Joinery rallied as it posted an increase in first-half sales and profits, while Vodafone, ITV and IG Group also advanced after results, along with Wickes.
On the downside, molten metal flow engineering company Vesuvius tumbled as it said market conditions remained challenging and that it does not expect an improvement in its performance until 2026.
3i Group and Wizz Air were also weaker after results.
Market Movers
FTSE 100 (UKX) 9,146.62 0.94%
FTSE 250 (MCX) 22,152.78 0.63%
techMARK (TASX) 5,257.25 1.13%
FTSE 100 - Risers
Reckitt Benckiser Group (RKT) 5,516.00p 9.44%
BT Group (BT.A) 217.70p 9.18%
Airtel Africa (AAF) 194.10p 6.01%
Vodafone Group (VOD) 86.96p 4.57%
Babcock International Group (BAB) 1,074.00p 2.87%
Diploma (DPLM) 5,225.00p 2.45%
Standard Chartered (STAN) 1,358.00p 2.34%
Ashtead Group (AHT) 4,965.00p 2.22%
Barclays (BARC) 359.25p 2.10%
AstraZeneca (AZN) 10,894.00p 2.06%
FTSE 100 - Fallers
SSE (SSE) 1,865.00p -2.46%
3i Group (III) 4,257.00p -2.00%
Fresnillo (FRES) 1,437.00p -1.78%
InterContinental Hotels Group (IHG) 8,500.00p -1.51%
Beazley (BEZ) 901.00p -0.99%
Unite Group (UTG) 787.50p -0.94%
Melrose Industries (MRO) 521.80p -0.91%
Severn Trent (SVT) 2,696.00p -0.77%
Smurfit Westrock (DI) (SWR) 3,477.00p -0.77%
St James's Place (STJ) 1,179.00p -0.72%
FTSE 250 - Risers
Howden Joinery Group (HWDN) 933.00p 11.67%
ITV (ITV) 85.90p 10.84%
IG Group Holdings (IGG) 1,123.00p 6.04%
Wickes Group (WIX) 232.00p 5.22%
Future (FUTR) 769.50p 4.69%
Cranswick (CWK) 5,440.00p 4.21%
Oxford Nanopore Technologies (ONT) 195.80p 4.04%
Genuit Group (GEN) 406.50p 3.70%
Travis Perkins (TPK) 593.00p 3.67%
Volution Group (FAN) 655.00p 3.64%
FTSE 250 - Fallers
Vesuvius (VSVS) 366.20p -5.57%
Pennon Group (PNN) 503.50p -5.45%
Hochschild Mining (HOC) 277.40p -4.21%
Discoverie Group (DSCV) 686.00p -3.65%
Telecom Plus (TEP) 1,926.00p -3.31%
North Atlantic Smaller Companies Inv Trust (NAS) 393.00p -2.24%
Foresight Solar Fund Limited (FSFL) 90.40p -2.06%
Bloomsbury Publishing (BMY) 501.00p -1.96%
Sequoia Economic Infrastructure Income Fund Limited (SEQI) 80.30p -1.95%
GCP Infrastructure Investments Ltd (GCP) 78.90p -1.87%