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* FTSE 100 up 0.4 pct
* Fresnillo jumps 3.7 pct on Goldman upgrade
* Smurfit Kappa rejects revised International Paper bid
* JD Sports rises 3 pct on Finish Line takeover
* Speedy Hire jumps 7 pct after results
By Helen Reid
Fears of a full-blown trade conflict between the world's twobiggest economies eased on a report that
The FTSE 100 was up 0.4 percent by 0820 GMT, drivenhigher by energy, financials and healthcare sectors. It wastrading at 6,948 points, still under the 7,000 level.
UniCredit strategists downgraded their view on basicmaterials and chemicals, saying they would prefer more"defensive", high dividend-yielding sectors such as healthcare,utilities, consumer staples seen as less risky - in the contextof trade tensions.
"It is easy to forget against the backdrop of Brexit-relateduncertainty that the
"The
Fresnillo jumped 3.7 percent after Goldman Sachsanalysts upgraded the stock to "buy" and added it to their"conviction list", based on their bullish position on gold.
"Our commodities team is bullish on gold for the first timein more than five years based on higher inflation, rising EMwealth and concerns about an equity correction," wrote Goldmanstrategists, upgrading the whole gold mining sector.
Randgold Resources also gained 1.5 percent after theGoldman upgrade to "buy".
M&A news continued to be a driver across large and mid-sizestocks.
Smurfit Kappa shares dipped 3 percent, the worstperformers on the FTSE, after the firm spurned a renewed offerfrom International Paper
Having jumped to a record high on news of the takeoverapproach early this month, Smurfit's shares are now down 7percent from that peak.
Among mid-caps, JD Sports led the pack, rising 3.9percent after agreeing to buy Finish Line, one of the largestretailers of athletic footwear and apparel in the
"This
Inchcape also benefited from a takeover move,gaining 1.3 percent after saying it would buy Grupo Rudelman, anauto distribution business in
Dana Inc increased its cash offer for GKN by
Tools and equipment hire company Speedy Hire rose7.7 percent to the top of the small-caps index after sayingfull-year profits were likely to be ahead ofexpectations.
Overall, analysts are downgrading their estimates for FTSE100 earnings, and the leading
(Reporting by Helen Reid; editing by David Stamp)