UPDATE 2-FTSE 100 hits over 9-month high as Sino-U.S. trade tensions ease

* FTSE 100 up 1%, FTSE 250 rises 0.9%
* Sino-U.S. trade relief stokes risk appetite
* Asia-focussed banks lead FTSE 100
* Future Plc surges on upbeat forecast
* Stagecoach skids after DB rating cut

(Adds news items, updates to closing prices)
By Shashwat Awasthi
July 1 (Reuters) - UK stocks began the new quarter on a
solid footing on Monday, with the main index touching a more
than nine-month high, as a thaw in the U.S.-China trade dispute
lifted market sentiment and spurred a rally in global stocks.
The FTSE 100 .FTSE , which in June enjoyed its best month
since January, surged 1%. The mid-cap FTSE 250 .FTMC climbed
0.9%.
Appetite for risky assets soared after President Donald
Trump on Saturday offered concessions to China's Xi Jinping at
the G20 summit, including holding off slapping new tariffs on
goods and relaxing restrictions on tech firm Huawei HWT.UL .
Beijing, in turn, agreed to make new purchases of U.S. farm
products as part of renewed negotiations, aiding gains in Asia
as well as on Wall Street, where the S&P 500 .SPX hit a record
high. Investors piled into equities, especially those of banks
with a big presence in Asia such as HSBC HSBA.L and Prudential
PRU.L . Shares of miners, sensitive to news surrounding top
metals consumer China, also boosted the main index.
But with no deadline set for the deal and few details on how
the parties would resolve key differences that caused previous
negotiations to stall, analysts took a cautious stance on the
weekend's trade-related developments.
"In the big picture, it doesn't change anything," said
Andrew Milligan, head of global strategy at Aberdeen Standard
Investments.
"It (G20 meeting) was never likely to solve the whole
problem, but it's a useful stepping stone."
Demand for commodities such as gold waned as investors
flocked to stocks and the U.S. dollar, leading to a 1.6% drop in
the shares of precious metals miner Fresnillo FRES.L .
Oil majors Shell RDSa.L and BP BP.L advanced as crude
prices surged after top producers Saudi Arabia, Russia and Iraq
backed a plan to extend supply cuts for another six to nine
months. O/R
The pound, however, was pressured after the dollar firmed
and as data showed British manufacturers suffered the sharpest
fall in activity in more than six years last month, highlighting
the toll a protracted Brexit process has taken on the country.
In one of the few news-driven moves, media services firm
Future Plc FUTR.L climbed nearly 7% on the mid-cap index after
it forecast full-year results that were ahead of previous
expectations. Stagecoach SGC.L slid 7.6% after Deutsche Bank cut its
price target for shares in the train and bus operator.