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FTSE 100 gains on U.S.-China trade optimism

Credit: REUTERS/TOBY MELVILLE

The FTSE 100 rose for a second straight session on Tuesday as a pledge by Washington and Beijing to stand by their Phase-1 trade pact lifted global sentiment, while technology firm Aveva jumped after signing a $5 billion takeover deal.

By Sagarika Jaisinghani

Aug 25 (Reuters) - The FTSE 100 rose for a second straight session on Tuesday as a pledge by Washington and Beijing to stand by their Phase-1 trade pact lifted global sentiment, while technology firm Aveva jumped after signing a $5 billion takeover deal.

The export-heavy FTSE 100 .FTSE gained 0.6% and the mid-cap FTSE 250 .FTMC 0.3% as a phone call between U.S. and Chinese trade officials calmed jitters the deal could be on shaky ground due to simmering tensions between the world's top two economies.

AstraZeneca Plc AZN.L rose 0.9% after launching a trial for an antibody-based treatment for COVID-19.

The drugmaker had logged its best session in a week on Monday as a report said the U.S. government was considering fast-tracking its experimental vaccine, already among the most advanced vaccine candidates.

"It seems investors are ignoring that the virus continues to spread fast around the globe," said Charalambos Pissouros, a market analyst at JFD Group.

"Perhaps the market believes that we have more cases due to more tests being conducted, and/or it may be looking at the better situation in terms of hospitalisation and death toll."

Global equity markets have already retraced most of their coronavirus-driven losses, powered by trillions of dollars in stimulus. The UK's FTSE 100 is on course for its best month since April 2018 even as concerns linger about a choppy economic recovery after a record contraction in the second quarter.

On Tuesday, debt collector Arrow Global ARWA.L posted a loss for the first half of the year, but its shares rose 0.9% as it said collections performance was improving.

Aveva Group AVV.L rose 1.6% as it said it would buy OSIsoft, a privately held maker of industrial software used to manage plants and factories, for an enterprise value of $5 billion.

Retailer DFS Furniture Plc DFSD.L jumped 15.1% after saying its performance over the last six weeks was significantly above its initial expectations.

(Reporting by Sagarika Jaisinghani in Bengaluru; Editing by Subhranshu Sahu)

((Sagarika.Jaisinghani@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2256;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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