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LONDON (Alliance News) - Stocks in London ended higher, with miners driving the FTSE 100 to a near four-month high, amid brighter prospects regarding US-China trade negotiations. Investor sentiment was buoyed after US President Donald Trump said if negotiators are close to a deal on trade between Beijing and Washington, he could extend the March 1 deadline for upping tariffs on Chinese goods.According to a report from the South China Morning Post, Chinese President Xi Jinping is scheduled to meet US Trade Representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin during this week's talks in Beijing.The meeting with Xi as well as a banquet for the US delegation would be a sign of goodwill to cement a trade deal between the world's two biggest economies, the SCMP said.The FTSE 100 index closed 57.70 points higher, or 0.8%, at 7,190.84. The large cap index hit an intraday high of 7,199.79 - its highest level since October.The FTSE 250 ended up 147.84 points, or 0.8%, at 18,972.62, and the AIM All-Share closed up 2.19 points, or 0.2%, at 910.48.The Cboe UK 100 ended up 0.7% at 12,210.66, the Cboe UK 250 closed up 0.8% at 16,900.17, and the Cboe Small Companies ended up 0.8% at 11,238.69."Whilst solid progress in US-Sino [trade talks] is still lacking, Trump being willing to extend the trade truce deadline has been enough to lift sentiment. Indices across the globe have gained ground on trade deal hopes. This is all fine for now but if we don't start seeing something more tangible by March investors are going to get nervous again," said City Index analyst Fiona Cincotta.On the London Stock Exchange, Smurfit Kappa ended as the best blue chip performer, up 7.0% after the Irish paper and corrugated packaging firm raised its dividend on the back of higher annual revenue and earnings. For 2018, revenue was EUR8.95 billion, up 4.6% from EUR8.56 billion in 2017 and earnings before interest, taxes, depreciation and amortisation totalled EUR1.58 billion, versus EUR1.27 billion the year before. Consensus was for EUR1.53 billion.The company declared a final dividend of 72.2 euro cents per share, bringing the total for 2018 up 11% to 97.6 cents from from 87.6 cents in 2017. Peers DS Smith and Mondi closed up 4.4% and 1.7% respectively. Rolls-Royce Holdings closed up 3.1% after Credit Suisse raised the jet engine maker to Outperform from Neutral. Chilean copper miner Antofagasta closed up 3.0% amid the positive US-China trade developments. "It comes as no surprise to see Antofagasta near to top of the FTSE gainers today, as the prospect of a breakthrough in US-China trade talks help boost prospective demand for copper. With global copper supply on the wane, and the prospect of a rise in demand if the US and China reach an agreement, it is no wonder investors are seeing the attractiveness of the likes of Antofagasta, Glencore, and Anglo American," said IG market analyst Joshua Mahony.Miners Glencore, Anglo American and BHP closed up 2.2%, 2.0% and 2.4% respectively. Whitbread closed up 2.9% after the hospitality firm unveiled a further GBP2 billion of share buybacks at its capital markets day. This will be added to the GBP500 million announced last month - bringing the total to GBP2.5 billion. At the other end of the large cap index, TUI ended the worst performer, down 6.3% adding to losses after the Anglo-German travel operator reported on Tuesday a widened loss in the first quarter. Last week, TUI had warned on stagnating earnings going forward. The stock is down 31% over the past week.The pound was marginally lower, quoted at USD1.2870 at the London equities close, compared to USD1.2890 at the close Tuesday, following a drop in headline UK inflation. UK consumer price inflation eased in January to a two-year low, the Office for National Statistics said, driven by falls in electricity, gas and fuel prices.The consumer price index came in at 1.8% on an annual basis in January, slowing from a 2.1% rise in December. Analysts had expected a 1.9% rise for January.The latest reading marks the first time CPI has fallen below the Bank of England's 2.0% target since January 2017.The largest downward contribution to CPI came from electricity, gas and other fuels, the ONS said, with prices falling between December and January compared with price rises the same time a year ago.Should UK inflation continue to remain below 2.0% in the coming few months, in sync with the central bank's projections, economists does not rule out a rate hike this year. The Bank of England is set to stay focused on the decade-high wage growth and the impact of Brexit. "For the Bank of England though, what matters is where inflation goes beyond 2019. Wage growth has stayed strong, and amongst the short-term Brexit warnings, the Bank of England still hinted last week that mounting domestic inflationary pressures could require a faster pace of tightening than currently anticipated by markets. This is one reason why we don't think a rate hike should be ruled out just yet this year," said analysts at ING. While leaving rates and bond purchases unchanged last week, BoE Governor Mark Carney hinted at the need for a gradual and limited tightening of monetary policy in the medium term, to return inflation to the target. "The sluggish UK economy is symptomatic of the wider picture. Central banks across the globe have taken their foot off the stimulus pedal and we are now seeing the results. With idiosyncratic issues in both the US and Europe slowing growth, Brexit affecting the UK, trade disputes, and a Chinese slowdown, we're indisputably in a mid-cycle slowdown," said Close Brothers Chief Investment Officer Nancy Curtin."A global recession seems a far flung prospect, however in the UK Carney must be flexible and data-driven, putting decisive monetary policy on the back burner until greater political and economic clarity emerge," Curtin added. The UK is set to leave the EU on March 29, but uncertainty persists on whether the country will leave the bloc with some deal on trade and other crucial matters or crash out without any arrangements.Downing Street has denied that Prime Minister Theresa May is taking a no-deal Brexit off the table.Eurosceptic Tories are threatening to rebel in a key Brexit vote on Thursday over a motion tabled in the PM's name which they claim would commit her to avoiding EU withdrawal without a deal.The motion asks the House to reiterate its support for the approach agreed on January 29, when the Commons backed an amendment authorising May to return to Brussels to renegotiate the Irish backstop.May's official spokesman told reporters at a Westminster media briefing: "What the motion reflects is the position the prime minister set out after those votes, which is the Parliament wants the UK to leave with a deal, but in order to do so it requires us to secure legally-binding changes in relation to the backstop."He added: "No-deal is an eventuality we wish to avoid, but one we continue to plan for. Does no-deal remain on the table? The answer is yes."The spokesman declined to discuss reports that senior negotiator Olly Robbins was overheard in a Brussels bar saying that May planned to wait until the end of March before confronting MPs with a choice between her deal or a lengthy delay to Brexit.In Paris the CAC 40 ended up 0.4%. The DAX 30 in Frankfurt also ended 0.4% higher. The euro was down, quoted at USD1.1288 at the European equities close, against USD1.1314 late Tuesday, following weak eurozone industrial production data.Industrial production fell by a seasonally adjusted 0.9% in December from the month before in the euro area and by 0.5% in the EU28 as a whole, according to estimates published by Eurostat.The December decline represented a slowdown in the pace of decline. In November 2018, industrial production fell by 1.7% on month in the euro area and by 1.2% in the EU28.On annual basis, industrial production decreased in December by 4.2% after a 3% decline in November. Economists had forecast a 3.3% fall. Stocks in New York were higher at the London equities close amid hopes another government shutdown could be avoided. Trump said he was "not happy" with a tentative deal reached by lawmakers but did not specifically reject the proposal.The DJIA was up 0.5%, the S&P 500 index up 0.4% and the Nasdaq Composite up 0.2%.The agreement includes far less money for physical barriers on the border than Trump has demanded, although political observers have suggested the president will likely want to avoid another damaging shutdown.Trump has argued Democrats will be to blame for another shutdown, although the public may disagree as his controversial border wall remains the key sticking point in negotiations.On the economic front, the US Labor Department released a report showing the annual rate of consumer price growth slowed to 1.6% in January from 1.9% in December. This was the slowest rate of growth since June of 2017.Meanwhile, the report said the annual rate of core consumer price growth was unchanged from the two previous months at 2.2%."Overall, these data support our baseline view of a well-behaved inflationary environment that provides the Fed room to pause before raising rates again," said Gregory Daco, chief US economist at Oxford Economics.Brent oil was higher, quoted at USD63.45 a barrel at the London equities close from USD62.48 at the close Tuesday.The North Sea benchmark hit an intraday high of USD63.96 in afternoon trade after exporter Saudi Arabia promised deeper crude output cuts.Saudi Arabia, the world's top crude exporter and de facto leader of OPEC, said that it would reduce oil production to about 9.8 million barrels per day in March to bolster prices. Earlier, the nation pledged to reduce production by 9.3 million barrels per day.Gold was quoted at USD1,315.60 an ounce at the London equities close, higher than USD1,309.81 late Tuesday.The economic events calendar on Thursday has GDP readings from Germany and the eurozone at 0700 GMT and 1000 GMT respectively. There are also US producer prices and retail sales figures at 1330 GMT. The UK corporate calendar on Thursday has annual results from Anglo-Swedish drugmaker AstraZeneca, software firm Micro Focus International, wound dressings maker ConvaTec and opioid addiction treatment specialist Indivior.