UPDATE 1-Britain's FTSE snaps four-session losing streak

Tue, 27th Mar 2018 17:11

* FTSE 100 up 1.5 pct, approaches 7,000-point level

* Global trade worries ease

* Ferguson jumps after H1 profits

* GlaxoSmithKline advances on Novartis deal(Adds closing prices)

By Kit Rees

LONDON, March 27 (Reuters) - Britain's top share indexrebounded from its lowest level in more than a year on Tuesdayas risk assets breathed a sigh of relief on signs that a globaltrade war could be averted.

The blue-chip FTSE 100 closed 1.5 percent up at6,994.85 points, with almost every constituent in positiveterritory. Mid-cap shares rose by a shade more than 1percent.

A stronger dollar also helped to buoy the index. A weakpound typically supports the FTSE by giving an accounting boostto UK blue-chips companies that have revenue in dollars.

Risk assets came under pressure last week on the back ofworries over escalating global trade tensions after the UnitedStates planned tariffs on up to $60 billion of Chinese goods,with exposed sectors such as basic resources hit hardest.

However, hopes that tensions could ease were sparked byreports that Chinese and U.S. officials were in negotiations toavert a full-blown trade war.

"Suddenly the whole show is looking a lot like a negotiatingtool rather than any serious intention to imitate a trade war,"said Fiona Cincotta, senior market analyst at City Index.

The FTSE 100 has been trading at its lowest levels sinceDecember 2016, posting losses for the past four sessions. So farthe FTSE is down about 9 percent in 2018.

"It comes back to more stock-picking, because last year itwas difficult to lose out as long as you were holding on tosomething," said Mike van Dulken, head of research at AccendoMarkets.

Heating and plumbing products supplier Fergusonposted the best performance, up 6.7 percent after it reported arise in first-half profit and proposed a special dividend andshare consolidation of about $1 billion.

GlaxoSmithKline rose 4.8 percent after thepharmaceuticals group agreed to buy Novartis's stake intheir consumer healthcare joint venture for $13 billion.(Reporting by Kit Rees and Julien PonthusEditing by Peter Graff and David Goodman)