London's main index rose for the eleventh straight session on Friday, as trade-sensitive stocks cheered further positive signals from the United States and China over signing a Phase 1 deal. The FTSE 100, which is on its best run in three years, added 0.4 percent. Miners provided the biggest boost, with Glencore Plc and BHP Group Plc rising about 2 percent each.
Returning from their Christmas and Boxing Day break, traders hailed comments from Beijing that it was in close contact with Washington about an initial trade agreement, shortly after US President Donald Trump talked up a signing ceremony for the recently struck Phase 1 trade deal.
Asia-focussed banking heavyweight HSBC Holdings Plc was among the major boosts to the benchmark, while oil majors Shell and BP Plc advanced nearly 1 percent each as crude prices hit a three-month high, as the index touched its highest level since July 30.
The midcap FTSE 250 was flat by 0844 GMT but hovered close to a record high, as trading volume remained thin in a holiday-shortened week.
UK markets, in tandem with global peers, are ushering in an upbeat end to the year, as worries around major macro-economic events such as the US-China trade war, British politics and Brexit have receded recently.
This has increased the risk appetite of investors towards equities, with the blue-chip bourse on course for its best month since April 2018 and its best annual performance since 2016. The more domestically-focused midcaps, buoyed by Prime Minister Boris Johnson's election victory and prospects of some clarity over Brexit, are on track for best month since January and their biggest yearly gain since 2013.
Looking ahead to 2020, developments around further stages of a Sino-US trade deal and Britain's negotiation of a free trade agreement with the European Union look set to dominate headlines.
"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. UAE-based NMC Health Plc fell 3 percent. The healthcare provider's shares shed more than halved in value last week after short-seller Muddy Waters criticised its financials, but shot up more than 36 percent on Monday after promising to review its books.
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