(Sharecast News) - London stocks had extended gains by midday on Tuesday amid hopes of progress in Russia-Ukraine peace talks.
The FTSE 100 was up 1.3% at 7,573.64.
Russ Mould, investment director at AJ Bell, said: "Having tripped over on Monday afternoon amid concern about China lockdowns and the conflict in Ukraine the FTSE 100 sprang back to its feet on Tuesday on hopes the latest round of peace talks between Moscow and Kyiv might yield tangible progress.
"Suggestions the Russian side are softening some of their previous demands raised spirits, but the market is unlikely to take anything for granted when it comes to the machinations of Vladimir Putin.
"The resilience of global stocks given the cocktail of risks facing the global economy is truly impressive but this stoicism is likely to face continuing tests as the impact of mounting prices and the actions of central banks continue to feed through, not to mention the ongoing geopolitical concerns.
"The FTSE 100 has proved to be better placed than most thanks to relatively cheap valuations, strong income credentials and exposure to surging commodity markets, however it is not immune to the current pressures."
In equity markets, Russia-focused miner Polymetal International surged after saying it was considering changes to its corporate structure including "distinct ownership in various jurisdictions" where the company operates. Polymetal said deliberations were at an early stage.
Currys rallied after markets blog Betaville suggested potential takeover interest in the electricals retailer.
On the downside, Barclays shares slumped after a share placing. According to terms seen by Bloomberg, 575m shares in the bank were placed via Goldman Sachs, at a range of between 147.50p and 150.75p a share. A trader said it was "unconfirmed whether it was Qatar Investment Authority" who sold the shares.
Royal Mail was dented by a downgrade to 'sell' from 'hold' at Deutsche Bank, which also slashed its price target to 275p from 680p.
Bellway was on the back foot as the housebuilder announced a big increase in its dividend and an 8.9% jump in underlying first-half profit, but warned over potential building safety costs.
Market Movers
FTSE 100 (UKX) 7,573.64 1.34%
FTSE 250 (MCX) 21,343.93 1.30%
techMARK (TASX) 4,376.16 1.26%
FTSE 100 - Risers
Coca-Cola HBC AG (CDI) (CCH) 1,683.00p 5.88%
Melrose Industries (MRO) 130.10p 4.50%
JD Sports Fashion (JD.) 158.30p 4.25%
Prudential (PRU) 1,121.00p 4.23%
Ocado Group (OCDO) 1,134.50p 4.13%
Next (NXT) 6,556.00p 3.96%
Burberry Group (BRBY) 1,755.50p 3.81%
Scottish Mortgage Inv Trust (SMT) 1,046.50p 3.77%
International Consolidated Airlines Group SA (CDI) (IAG) 145.06p 3.67%
Croda International (CRDA) 7,770.00p 3.27%
FTSE 100 - Fallers
Barclays (BARC) 154.58p -3.68%
Royal Mail (RMG) 344.90p -2.76%
BAE Systems (BA.) 712.80p -2.57%
British American Tobacco (BATS) 3,227.50p -2.17%
B&M European Value Retail S.A. (DI) (BME) 547.80p -2.00%
Pearson (PSON) 781.20p -1.11%
Ashtead Group (AHT) 5,076.00p -0.74%
Imperial Brands (IMB) 1,648.50p -0.69%
Avast (AVST) 570.20p -0.63%
Ferguson (FERG) 10,365.00p -0.29%
FTSE 250 - Risers
Polymetal International (POLY) 291.00p 19.75%
Ferrexpo (FXPO) 190.10p 13.22%
Trustpilot Group (TRST) 152.10p 7.80%
Aston Martin Lagonda Global Holdings (AML) 988.20p 6.24%
Liontrust Asset Management (LIO) 1,308.00p 6.17%
TBC Bank Group (TBCG) 1,104.00p 6.15%
Wizz Air Holdings (WIZZ) 2,817.00p 6.10%
Currys (CURY) 97.70p 5.22%
Molten Ventures (GROW) 755.00p 4.43%
Future (FUTR) 2,704.00p 4.40%
FTSE 250 - Fallers
Bellway (BWY) 2,456.00p -5.54%
TP Icap Group (TCAP) 145.80p -1.82%
Harbour Energy (HBR) 475.20p -1.61%
Hochschild Mining (HOC) 128.80p -1.30%
JPMorgan European Discovery Trust (JEDT) 442.50p -0.90%
Wetherspoon (J.D.) (JDW) 792.00p -0.88%
Schroder Oriental Income Fund Ltd. (SOI) 269.50p -0.74%
UK Commercial Property Reit Limited (UKCM) 84.90p -0.70%
Fidelity China Special Situations (FCSS) 254.50p -0.59%
Grainger (GRI) 295.40p -0.54%