UPDATE 2-FTSE 100 springs back as hopes of trade deal rise; Greggs on a roll

  • Reuters
  • Stock Market News
UPDATE 2-FTSE 100 springs back as hopes of trade deal rise; Greggs on a roll
Credit: © Reuters.

* FTSE 100 up 1.1%, FTSE 250 up 1.3%

* Oil, banks boost main index

* Vodafone falls to a near 10-yr low on dividend cut

* Greggs soars on vegan sausage roll popularity

* Renishaw skids after cutting profit target again (Adds news items, replaces analyst comment, updates to closing prices)

By Shashwat Awasthi and Yadarisa Shabong

May 14 (Reuters) - British shares surged on Tuesday as investors grew optimistic about a U.S.-China trade deal after U.S. President Donald Trump vowed it would happen soon, while demand for vegan sausage rolls propelled baker Greggs to a record high.

The FTSE 100 .FTSE jumped 1.1%, its biggest one-day rise since early February, while the FTSE 250 .FTMC climbed 1.3% on its best day in more than four months.

Offering respite to a market that has been roiled by tit-for-tat tariffs in the last week, Trump said a trade deal with China would be reached soon, despite fears about a protracted trade battle. appears to be a degree of calculation going on here in that investors appear to be banking on any increased tariffs being in place for only a short period of time, with a deal being concluded soon after," CMC Markets analyst Michael Hewson said.

"Time will tell whether that belief is prescient or naïve."

Oil majors Shell RDSa.L and BP BP.L provided the biggest boosts on the main index as crude prices surged after Saudi Arabia said explosive-laden drones attacked facilities belonging to state oil company Aramco. O/R

Asia-facing financial heavyweights and miners .FTNMX1770 rebounded after steep losses in the previous sessions.

An earnings-laden day also saw support services group DCC DCC.L among the top gainers with a 3.6% rise, after it posted annual results and guided to another year of profit growth.

A sour spot on the index was telecoms giant Vodafone VOD.L , which dropped 3.7% to its lowest in a decade after it slashed its dividend to secure enough firepower to build 5G networks and complete its acquisition of Liberty Global (NASDAQ: LBTYA ) assets. developer Land Securities LAND.L also lost 1.4% after it reported a wider loss due to a steep decline in the value of its assets on account of a string of collapses on Britain's shopping streets. mid-caps, baker Greggs GRG.L surged more than 15% to an all-time high after it said the popularity of its vegan sausage rolls had continued to grow, leading it to hike its 2019 profit forecast for the second time this year. owner EI Group EIGE.L jumped 6.5% after it reported a rise in half-year earnings and said a late Easter had given a good start to its second half. Renishaw RSW.L skidded 6.4% to a near two-year low after the engineering group cut its annual profit target for the second time this year.

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