UPDATE 1-FTSE 100 rises after China GDP data; IAG jumps

London's FTSE 100 joined a rally in global bourses on Friday as China's economic growth met expectations despite its trade war with the United States, while IAG jumped after it scrapped a rule capping ownership of its shares by non-Europeans.

The FTSE 100 added 0.4%, boosted by miners, as well as British Airways-owner IAG, which rose 5.3% to its highest level since Sept. 2018. The midcap FTSE 250 advanced 0.3%. But motor insurer Hastings slid 8% after it forecast a slump in annual earnings and lower dividend, sending its shares to their lowest level since July 2016.

Peers Admiral and Direct Line gave up 2% each. China's 2019 growth of 6.1% was its weakest in nearly three decades but within Beijing's target range, and signs of an improvement in business confidence after de-escalation of its dispute with Washington comforted investors.

"The Phase 1 deal has partially lifted the cloud of uncertainty hanging over the economy... If these numbers are anything to go by, 2020 could be a far more productive year for the world's second-largest economy," OANDA analyst Craig Erlam said. The preliminary trade deal, signed on Wednesday, defused some tension that had roiled global markets for more than 18 months. Dealers now look ahead to further negotiations between the two sides over a broader agreement.

"It's clear that the trade war has taken its toll on China's already decelerating economy and the deal that was signed this week may enable it to find some form again," Erlam said. NMC Health soared 10% to the top of the blue-chip bourse after an independent review committee tapped a former Federal Bureau of Investigation director to compile a report on allegations by U.S. firm Muddy Waters.

Midcap food processing company Cranswick surged 7% to a record high after it forecast annual profit above market expectations. The FTSE 100 was on course to bag its first weekly gain of the new decade, aided largely by the signing of the trade deal.

The midcaps look set to gain more than 1% this week, as the odds of the Bank of England cutting interest rates as soon as this month in the face of sluggish growth have soared exponentially in recent days.