(Sharecast News) - London stocks gained in early trade on Wednesday, recovering from heavy losses in the previous session, when markets were rattled by trade war concerns.
At 0840 GMT, the FTSE 100 was up 0.5% at 8,803.05, having closed down 1.3% on Tuesday.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "After a tortuous Tuesday for global markets, investors have clung onto sparks of positivity which have helped the FTSE 100 make some gains in early trade, although it's tentative progress.
"Hopes are rising that a Ukraine peace deal could be back on, China's latest services snapshot shows promise and there are even some glimmers of possibility that some reprieve from punishing tariffs could be in sight.
"Expectations have risen that US relations with Ukraine are warming up from the ice-cold intensity of Friday's Oval Office meeting between Trump, Vance and Zelensky. Trump brandished a letter from the Ukrainian President, in his address to Congress, which he said indicated Kyiv was ready to come to the negotiating table. The renewed willingness from Zelensky to sign a minerals deal has led to hopes that a way can be found out of a diplomatic quagmire, which has eased some geopolitics fears."
Streeter also said that although Trump ramped up the rhetoric when it comes to trade, promising reciprocal tariffs on more trade partners, "there are some shards of hope that high tariffs could be a negotiating tactic rather than set long-term trade policy".
"It comes after the US Commerce Secretary Howard Lutnick has dangled the possibility that Trump could announce a deal to reduce the duties on Mexico and Canada as soon as today, citing pledges on reducing fentanyl drug flows as the reason."
A survey released earlier showed that activity in China's services sector continued to grow in February, signalling a sustained recovery.
The Caixin/S&P Global services purchasing managers' index rose to 51.4 from 51.0 in January, coming in above the 50.0 mark that separates contraction from expansion for 26 months in a row. It was above analysts' expectations for a reading of 50.8.
The survey found that February's expansion was driven by a combination of higher sales, the start-up of new projects and promotional work.
In equity markets, Games Workshop surged to the top of the FTSE 100 as it lifted guidance for the full year, saying trading in January and February had been ahead of expectations, with strong trading across both the core business and licensing.
Barclays also rose sharply after an upgrade to 'outperform' by BNP Paribas Exane.
Breedon racked up strong gains after full-year results and as it announced the acquisition of US construction materials and surfacing solutions business Lionmark for $238m (187m).
Wealth management outfit Quilter jumped as it lifted its full-year dividend by 13% after a strong end to 2024, as the company reported double-digit profit growth and a big increase in assets under management and administration.
Moonpig shot higher after an initiation at 'outperform' by RBC Capital Markets.
Market Movers
FTSE 100 (UKX) 8,803.05 0.50%
FTSE 250 (MCX) 20,265.19 1.58%
techMARK (TASX) 4,815.19 0.23%
FTSE 100 - Risers
Games Workshop Group (GAW) 14,880.00p 8.14%
Barclays (BARC) 311.30p 6.46%
CRH (CDI) (CRH) 7,704.00p 5.59%
Smurfit Westrock (DI) (SWR) 3,858.00p 4.89%
Fresnillo (FRES) 817.00p 4.74%
International Consolidated Airlines Group SA (CDI) (IAG) 332.40p 4.14%
easyJet (EZJ) 496.60p 3.85%
Mondi (MNDI) 1,240.50p 3.68%
Anglo American (AAL) 2,381.00p 3.48%
Melrose Industries (MRO) 664.20p 3.46%
FTSE 100 - Fallers
National Grid (NG.) 940.80p -3.21%
British American Tobacco (BATS) 3,060.00p -3.04%
Severn Trent (SVT) 2,441.00p -2.83%
Haleon (HLN) 405.60p -2.24%
Unilever (ULVR) 4,524.00p -2.01%
SSE (SSE) 1,476.50p -1.93%
GSK (GSK) 1,480.00p -1.92%
United Utilities Group (UU.) 958.60p -1.80%
Imperial Brands (IMB) 2,774.00p -1.77%
Vodafone Group (VOD) 68.74p -1.55%
FTSE 250 - Risers
Breedon Group (BREE) 482.50p 12.87%
Wizz Air Holdings (WIZZ) 1,596.00p 9.77%
Ferrexpo (FXPO) 77.40p 9.48%
Indivior (INDV) 779.50p 7.89%
Quilter (QLT) 162.30p 7.48%
Moonpig Group (MOON) 223.00p 7.21%
Aston Martin Lagonda Global Holdings (AML) 80.55p 7.04%
Ibstock (IBST) 162.00p 6.30%
Hays (HAS) 71.45p 5.07%
Babcock International Group (BAB) 729.00p 4.82%
FTSE 250 - Fallers
Balfour Beatty (BBY) 446.80p -1.93%
Drax Group (DRX) 587.50p -1.51%
Tritax Big Box Reit (BBOX) 145.60p -1.36%
3i Infrastructure (3IN) 316.00p -0.63%
Pantheon International (PIN) 323.00p -0.62%
Pennon Group (PNN) 405.80p -0.59%
Supermarket Income Reit (SUPR) 71.00p -0.42%
Derwent London (DLN) 1,798.00p -0.39%
Primary Health Properties (PHP) 92.20p -0.22%
Capital Gearing Trust (CGT) 4,840.00p -0.21%
89.77 (1.05%)
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