Source: Sharecast
At 0830 BST, the FTSE 100 was up 1.2% at 7,796.42, having closed down 4.4% on Monday as the Trump tariff selloff continued.
The early gains came despite escalating tensions between the US and China, after the latter said it would "fight to the end" as Washington threatened an additional 50% tariff if Beijing went ahead with retaliatory measures of its own against American imports.
US President Donald Trump made the threat late on Monday, a move described as "a mistake on top of a mistake, which once again exposes the US’s blackmailing nature", Agence France-Presse quoted a Commerce Ministry spokesperson as saying on Tuesday.
"China will never accept this. If the US insists on going its own way, China will fight it to the end. If the US escalates its tariff measures, China will resolutely take countermeasures to safeguard its own rights and interests."
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: "Investors are waking up to a positive sight for once, with markets opening higher across a broad range of European indices and the FTSE 100 up 0.9% at the open.
"However, this should hardly be seen as the end of the trouble, especially with President Trump showing no signs of easing his stance on perceived trade imbalances, having doubled down on China.
"Still, there is a glimmer of hope, as Japanese markets are up nearly 6% following news that trade talks will begin in a few days. The sooner deals are reached, the quicker companies and investors can gain some clarity on the lay of the land."
In equity markets, BA and Iberia owner IAG flew to the top of the FTSE 100, closely followed by engine maker Rolls-Royce.
Scottish Mortgage Investment Trust, which is heavily- exposed to the US tech sector, was also a high riser.
Building materials group CRH - which has a large exposure to the US market - advanced.
Hilton Foods was in focus as it said it was on track to deliver 2025 earnings in line with guidance after a sharp jump in profits last year, driven by its core retail meat business which outperformed total market growth in every region.
The company posted a 25% rise in pre-tax earnings to £61m and hiked its dividend 7.8% to 34.5p.
Elsewhere, Howden Joinery announced that its chief financial officer was set to step down and be replaced by Coats Group's Jackie Callaway. Paul Hayes, 58, will retire as finance chief and from the board at the end of May, following five years in the role.
Recruiter Hays jumped after an upgrade to ‘equalweight’ at Morgan Stanley. The bank previously had an ‘underweight’ rating on the shares as it saw risk from Hays' large exposure to Germany combined with a weaker balance sheet and higher likelihood of a dividend cut.
"While these risks remain, we think they are now better reflected in the valuation, and our price target implies limited further downside," it said. "We therefore neutralise our rating."
Market Movers
FTSE 100 (UKX) 7,796.42 1.22%
FTSE 250 (MCX) 17,968.81 1.15%
techMARK (TASX) 4,219.19 1.10%
FTSE 100 - Risers
International Consolidated Airlines Group SA (CDI) (IAG) 234.50p 4.50%
Rolls-Royce Holdings (RR.) 658.20p 3.52%
Flutter Entertainment (DI) (FLTR) 16,720.00p 3.47%
Glencore (GLEN) 237.75p 3.35%
Scottish Mortgage Inv Trust (SMT) 841.60p 3.24%
CRH (CDI) (CRH) 6,442.00p 3.24%
Antofagasta (ANTO) 1,422.50p 2.86%
BP (BP.) 358.65p 2.78%
Entain (ENT) 516.00p 2.54%
London Stock Exchange Group (LSEG) 10,580.00p 2.47%
FTSE 100 - Fallers
BT Group (BT.A) 154.10p -1.34%
Standard Chartered (STAN) 924.60p -1.34%
Marks & Spencer Group (MKS) 353.50p -1.34%
Berkeley Group Holdings (The) (BKG) 3,540.00p -0.73%
United Utilities Group (UU.) 1,000.50p -0.65%
HSBC Holdings (HSBA) 735.00p -0.38%
Sainsbury (J) (SBRY) 232.40p -0.34%
Land Securities Group (LAND) 506.50p -0.30%
Severn Trent (SVT) 2,483.00p -0.24%
Vodafone Group (VOD) 65.08p -0.21%
FTSE 250 - Risers
BlackRock World Mining Trust (BRWM) 429.50p 5.66%
IP Group (IPO) 36.50p 4.89%
Bytes Technology Group (BYIT) 470.00p 4.40%
XPS Pensions Group (XPS) 356.50p 4.39%
Future (FUTR) 674.00p 4.17%
Carnival (CCL) 1,180.00p 4.06%
Watches of Switzerland Group (WOSG) 340.40p 3.91%
Baillie Gifford Japan Trust (BGFD) 682.00p 3.81%
Indivior (INDV) 744.00p 3.77%
Monks Inv Trust (MNKS) 1,074.00p 3.67%
FTSE 250 - Fallers
JTC (JTC) 782.00p -2.98%
Foresight Environmental Infrastructure Limited (FGEN) 65.00p -2.26%
AO World (AO.) 88.00p -1.79%
Barr (A.G.) (BAG) 625.00p -1.57%
Mitchells & Butlers (MAB) 217.00p -1.36%
NCC Group (NCC) 129.40p -1.22%
Pacific Horizon Inv Trust (PHI) 519.00p -1.14%
Impax Environmental Markets (IEM) 310.00p -1.12%
Aston Martin Lagonda Global Holdings (AML) 59.65p -1.08%
C&C Group (CDI) (CCR) 118.00p -1.01%
