UK shares rose amid signs of optimism in trade dispute

UK shares rose as risk sentiment picked up after comments from President Donald Trump playing down Washington's trade war with Beijing, while a slew of earnings reports drove major share moves on both main indexes.

The FTSE 100 was up 0.1% and the FTSE 250 was 0.3% higher by 0721 GMT. Trump on Tuesday described the conflict as "a little squabble" and said talks between the world's two largest economies had not collapsed.

Asia-focussed HSBC provided the biggest boost to the main index, up 0.6%. "A series of comments and tweets from the President has markets behaving a little more sensibly, but risks still seem skewed to the downside until there are clarity and a (trade) deal," Markets.com analyst Neil Wilson said.

On an earnings-heavy day, tour operator TUI was the biggest blue-chip gainer. It rose 2.8% after in-line half-year results while warning that lack of clarity over the status of its grounded Boeing 737 MAX planes could hit profits. The world's biggest catering firm Compass Group added 2.4% after hiking its annual organic revenue growth forecast. On the mid-cap index, lender CYBG recorded a steep rise after it swung to a first-half profit. Shares jumped 8.8% and were on track for their best day in more than three months.