(Alliance News) - Stocks in London are seen extending the previous session's gains on Wednesday amid signs of easing tensions between the US and China.IG says futures indicate the FTSE 100 index of large-caps to open 25.50 points higher at 7,276.40 on Wednesday. The FTSE 100 index closed up 24.18 points, or 0.3%, at 7,250.90 on Tuesday."Stock markets in Europe and the US rallied yesterday on the news the Trump administration would hold-off on introducing new tariffs on some goods until December. The announcement was the one bit of good macro news in the past few days, and it sparked a spate of buying," said David Madden at CMC Markets.The US Trade Representative said in a statement on Tuesday it was going ahead with the latest tranche of tariffs on China next month, but would delay the start for cell phones, laptops, computer monitors, video game consoles and some toys, footwear and clothing.CMC's Madden added: "Trade talks between the US and China will take place in September, and traders are a little more optimistic about the situation now."In the US on Tuesday, Wall Street ended sharply higher on the news, with the Dow Jones Industrial Average ending up 1.5%, the S&P 500 up 1.5%, and the tech-heavy Nasdaq Composite up 2.0%.This positive sentiment flowed through to Asia on Wednesday, with the Japanese Nikkei 225 index up 1.0%. In China, the Shanghai Composite is up 0.7%, while the Hang Seng index in Hong Kong is up 0.6%.Released overnight, Chinese industrial production grew 4.8% in July on an annual basis, slowing from the 6.3% rise reported for June and growing at the weakest rate since 2002.Retail sales in China grew 7.6%, again slower than the 9.8% recorded for June.To come in the economic calendar, German gross domestic product is at 0700 BST. In the UK, consumer price inflation is at 0930 BST while eurozone GDP is at 1000 BST."There has been growing chatter that Europe's largest economy is heading towards a recession, and this figure report will be closely watched. Yesterday's ZEW economic sentiment report spooked traders as it dropped to a level last seen in late 2011," CMC's Madden commented ahead of the German GDP release.In the UK corporate calendar on Wednesday, there are interim results from insurer Admiral, cybersecurity firm Avast and construction firm Balfour Beatty. At 0930 BST, there are interim results from financial services firm Prudential.
