(Reuters) - UK shares rose as risk appetite picked up after U.S. President Donald Trump played down Washington's trade war with Beijing, while a slew of earnings reports drove major share moves.
The FTSE 100 and the FTSE 250 were up 0.1% by 0836 GMT, outperforming their European counterparts. .
Trump on Tuesday described the Sino-U.S. conflict as "a little squabble" and said talks between the world's two largest economies had not collapsed.
"A series of comments and tweets from the President has markets behaving a little more sensibly, but risks still seem skewed to the downside until there is clarity and a (trade) deal," Markets.com analyst Neil Wilson said.
Asia-focussed HSBC provided the biggest boost to the main index, but it was offset by a drop in mining shares.
On an earnings-heavy day, Compass Group (LON:CPG) gained the most among blue-chip shares. The world's biggest catering company rose 3.1% after raising its forecast for annual organic revenue growth.
Home improvement retailer Kingfisher (LON:KGF) led declines with a 2.7% drop after lower first-quarter sales in France, its second-biggest market.
Utilities SSE (LON:SSE) and National GridMedia fell amid media reports on Labour Party leader Jeremy Corbyn's plans to nationalise energy networks at below market value.
Tour operator TUI fell 1.6% after warning that lack of clarity over the status of its grounded Boeing (NYSE:BA) 737 MAX planes could hit profits.
On the mid-cap index, bank CYBG jumped 5.5% and was on track for its best day in more than three months after it swung to a first-half profit.
Metro Bank, which has seen volatile trading in recent months after disclosing an accounting error, gained 10% as investors awaited details of fresh funding from new and existing investors.