LONDON, Jan 29 — British stocks jumped today and the pound was firmer before fresh crunch votes on Prime Minister Theresa May’s revised Brexit deal.

London’s benchmark FTSE 100 index was 1.3 per cent higher in midday deals, while Frankfurt and Paris rose on growing optimism over the US-China trade dispute.

Oil prices rebounded gently, having tumbled the prior day on worries over a slowing global economy and political instability in key producer Venezuela.

As British lawmakers readied to hold a series of votes that could reset the course of Brexit, the pound held recently won ground versus the dollar.

MPs are set to vote from 1900 GMT on measures that could include preventing a no-deal Brexit, delaying Brexit, changing the negotiated deal — and even seizing control of the entire process.

"The FTSE 100 is gaining ground ... with markets looking relatively optimistic about today’s parliamentary votes,” said IG analyst Joshua Mahony.

Sterling has enjoyed healthy buying in recent weeks on expectations that a chaotic no-deal exit will be avoided.

Aside from Brexit, the main focus is a two-day meeting between China and US officials aimed at resolving the long-running trade war that has been a drag on equities.

"Hopes are also running high that some progress can be seen in the US-China trade talks this week,” noted Axi Trader analyst James Hughes.

US President Donald Trump will meet China’s top economic envoy Liu He during the talks, which start Wednesday, while US Treasury Secretary Steven Mnuchin said he expected "significant progress at these meetings”.

In Asia meanwhile, markets mostly fell as the charging of Chinese giant Huawei in the US cast a shadow over the upcoming trade talks.

Traders in the region also tracked a Wall Street sell-off fuelled by concerns over corporate profits.

A busy week got off to a nervous start today after US industrial giant Caterpillar and chip company Nvidia projected worse-than-expected results for 2019, citing ongoing weakness in China.

The warnings come as Beijing struggles to kickstart the world’s number two economy, which expanded last year at its slowest pace for almost three decades, with a mammoth debt mountain and the US trade war hampering efforts.

Key figures around 1220 GMT

London – FTSE 100: UP 1.3 per cent at 6,834.50 points

Frankfurt – DAX 30: UP 0.1 per cent at 11,218.75

Paris – CAC 40: UP 0.6 per cent at 4,918.56

EURO STOXX 50: UP 0.4 per cent at 3,149.90

Tokyo – Nikkei 225: UP 0.1 per cent at 20,664.64 (close)

Hong Kong – Hang Seng: DOWN 0.2 per cent at 27,531.68 (close)

Shanghai – Composite: DOWN 0.1 per cent at 2,594.25 (close)

New York – Dow: DOWN 0.8 per cent at 24,528.22 (close)

Pound/dollar: UP at US$1.3166 from US$1.3163 at 2200 GMT Monday

Euro/pound: DOWN at 86.79 pence from 86.83 pence

Euro/dollar: UP at US$1.1436 from US$1.1428

Dollar/yen: DOWN at 109.45 yen from 109.35

Oil – Brent Crude: UP 55 cents at US$60.48 per barrel

Oil – West Texas Intermediate: UP 47 cents at US$52.46

— AFP