* FTSE 100 up 0.3%, FTSE 250 up 0.5%
* Miners gain as Shanghai nickel prices hit record high
* Positive U.S.-China trade signals buoy sentiment
* AIM-listed Shoe Zone tanks after warning on results
(Adds news item, graphic, updates to closing prices)
By Shashwat Awasthi and Indranil Sarkar
Aug 30 (Reuters) - Gains in mining companies after nickel
prices hit an all-time high and signs of a resumption of
U.S.-China trade talks lifted London's FTSE 100 on Friday, as
the index snapped a four-week losing streak.
The main index .FTSE added 0.3%, but still posted its
sharpest monthly fall since October in a month ravaged by
escalating trade disputes and fears of a recession. The mid-cap
FTSE 250 .FTMC gained 0.5%.
Heavyweight mining companies such as Rio Tinto RIO.L , BHP
BHPB.L and Glencore GLEN.L rose more than 2% each and
boosted the blue-chip index as a waste spill at a nickel plant
in Papua New Guinea raised supply fears. Investors also took heart from signals emanating from
Washington and Beijing overnight that they would resume talks to
try and end their protracted trade war, which broadly supported
global stock markets. "The more measured tone in deciding to focus on next month's
meeting to discuss removing the extra duties has seen some
optimism start to creep back in," said CMC Markets analyst
Michael Hewson.
Calming headlines on the trade front came at the end of a
torrid month that saw the United States and China exchange
another volley of tariffs, while the latter also allowed its
currency to devalue, which stirred further uneasiness and kept
dealers away from risky assets.
"All-in-all, it emphasises once again that the U.S.-China
trade dispute and/or its resolution remains the only game in
town for investors globally," said Jeffrey Halley, senior market
analyst, Asia Pacific at Oanda.
However, oil majors BP BP.L and Shell RDSa.L were among
a handful of blue-chip stocks in the red as they tracked a drop
in crude prices. O/R
The sterling remained subdued as lawmakers scrambled to find
a solution to the chaotic Brexit process, pushing up exporter
stocks such as Diageo DGE.L and Unilever ULVR.L .
The more domestically-focussed FTSE 250, which has broken
ranks with the local currency in recent months, gained,
supported by a 10.3% surge in building materials distributor
Grafton GFTU_u.L after its first-half results.
Shares of blue-chip IT group Micro Focus MCRO.L and
mid-cap consumer credit provider Amigo Holdings AMGO.L clawed
back some losses from the previous session's steep falls. Micro
Focus rose 5.5%, while Amigo climbed 12.6%.
Shares of AIM-listed Shoe Zone SHOE.L shed nearly a third
of their value and sank to an all-time low after the footwear
retailer warned annual results would be below expectations.
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FTSE 100 performance in August since 2016 https://tmsnrt.rs/2zzgrM4
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