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(Alliance News) - Stock prices in London opened sharply higher on Monday with the FTSE 100 hitting a two-month high as investors cheered a new trade detente between the US and China.The FTSE 100 was up 82.42 points, or 1.1%, at 7,508.05. The large cap index hit an intraday high of 7,513.50 in early trade, its highest level since late April.The UK's leading stock index was aided by weakness in the pound, quoted at USD1.2672 Monday, down from USD1.2705 at the London equities close Friday. The FTSE 250 was up 197.64 points, or 1.0%, at 19,659.74. The AIM All-Share was flat at 919.27. The Cboe UK 100 index was up 1.0% at 12,737.53. The Cboe UK 250 was up 0.7% at 17,527.81, and the Cboe UK Small Companies was flat at 11,295.83.In European equities, the CAC 40 in Paris was up 0.8% and the DAX 30 in Frankfurt was up 1.0%. The US will not impose new tariffs on Chinese goods, US President Donald Trump announced following a meeting with Chinese President Xi Jinping, allowing more time for negotiations on trade and market access.Trump also said that he would allow US companies to sell their products to Chinese firm Huawai, but that granting the telecommunications giant access to the US market would be dealt with further down the line, if talks progress."The much-anticipated G20-sidebar between Donald Trump and Xi Jinping didn't disappoint. According to the US president trade negotiations are now 'right back on track', Trump then pledging that he won't be adding additional tariffs onto Chinese goods - 'for the time being'. Xi, meanwhile, called for 'cooperation and dialogue', the Beijing leader no doubt keen to get talks up and running given Monday's Caixin manufacturing PMI unexpectedly contracted," said Spreadex analyst Connor Campbell. The manufacturing sector in China disappointed economist expectations after it fell back into contraction in June for the first time in four months, with new orders and output both both weakening.Data from the Caixin China General Manufacturing Purchasing Managers' Index fell to 49.4 points from 50.2 in May. This is the first time in four months the print fell below the 50 point mark that separates expansion from contraction in the sector.Economists had forecast the print to weaken to 50.0 points in June.Japan's manufacturing activity contracted in June as well. The manufacturing PMI reading came in at 49.3 in June, down from 49.5 in May. The score was below the line of 50 that separates expansion from contraction. Adding to the weekend's frantic diplomacy, Trump met Kim Jong Un in the Demilitarized Zone on Sunday, shaking hands with the North Korean leader over the concrete slab marking the line between the two Koreas, before becoming the first sitting US president to set foot in North Korea.The Japanese Nikkei 225 index closed up 2.1%. In China, the Shanghai Composite closed up 2.2%. Financial markets in Hong Kong were closed on Monday for the Special Administrative Region Establishment Day holiday. In the FTSE 100, DS Smith was up 3.0% after the paper and packaging company said it completed the sale of two packaging businesses in north west France and in Portugal to Memphis, Tennessee-based International Paper for EUR63 million. DS Smith said the sale honours the commitment made to the European Commission in relation to the clearance of its acquisition of Europac, which completed in January.Fellow packaging firms Smurfit Kappa and Mondi were up 2.8% and 2.1% respectively. At the other end of the large cap index, Mexican gold miner Fresnillo was the worst performer, down 1.9% tracking spot gold prices lower.The precious metal was quoted at USD1,385.02 an ounce, down sharply from USD1,411.62 late Friday. Last week, gold had touched a six-year high of USD1,438.63. Midcap gold miners Centamin and Acacia Mining were down 2.5% and 1.2% respectively.Additionally, Fresnillo said Monday it will record a USD8 million charge to interim profit over tax treatment of mining works in Mexico.In the FTSE 250, Future was the best performer, up 12% after the digital media and publishing firm said the "positive trends" it enjoyed first half of the year have continued and it now expects to report annual results ahead of expectations.Future said the performance was supported by positive audience growth within the Media division and a continued strong underlying performance of recent acquisitions. The company will report annual results in November. Still to come in the economic events calendar on Monday are manufacturing PMI readings from Italy, France, Germany, the eurozone and UK at 0845 BST, 0850 BST, 0855 BST, 0900 BST and 0930 BST respectively. The US reading follows at 1445 BST.The Organisation of the Petroleum Exporting Countries and its allies meet in Vienna to discuss oil production levels. The 176th OPEC meeting will start on Monday and end on Tuesday. Brent was quoted at USD66.58 a barrel Monday morning, up from USD65.30 late Friday.