Vodafone, defensive stocks lift FTSE 100; profit-taking hits Intertek

Britain's FTSE 100 edged higher on Tuesday as Vodafone gained after saying it would raise funds through a bond issue and investors turned to defensive stocks, while Intertek slipped as investors booked in profits after in-line results.

The FTSE 100 was up 0.4 percent, outperforming its euro-zone peers, while the FTSE 250 was down 0.2 percent by 0939 GMT.

Vodafone led the main bourse higher, adding 2.4 percent after saying it intends to raise about four billion euros by issuin mandatory convertible bonds. Shares in the world's second-largest mobile operator were on track for their best day since late November.

Blue-chip consumer and tobacco stocks - often considered to be safer bets at times of uncertainty - also supported the FTSE 100.

"As evidence grows across the globe of the negative impact that the trade dispute is having on economic growth, investors are increasingly keen to see solid evidence that a trade deal is coming," said London Capital Group analyst Jasper Lawler.

U.S. President Donald Trump and Chinese President Xi Jinping could reach a formal trade deal at a summit around March 27, the Wall Street Journal reported on Sunday.

British American Tobacco added 1.5 percent after saying a 436-million-pound charge related to court ruling in Canada on Monday would not impact its adjusted net debt to adjusted EBITDA ratio or 2019 cash flow.

Ladbrokes owner GVC reversed initial losses and rose 1.4 percent after posting full-year results and laying out plans to relocate servers hosting online gambling platforms to Ireland as part of its Brexit contingency plans.

Industrial firm Intertek, which slipped 3.2 percent, helped cap gains on the index. A trader attributed the fall to profit-taking after the company's results.

Sainsbury's also fell as data from Kantar Worldpanel showed the supermarket chain was the worst performer of Britain's big four supermarket groups in the latest 12-week period.

Online grocer Ocado and Marks and Spencer, which have announced plans for an online food tie-up, dipped by 2 percent.

Equipment rental firm Ashtead tumbled 2.8 percent despite a surge in quarterly earnings, with a trader saying the fall was due to the company failing to upgrade its full-year forecast.

On the mid-caps, aviation services provider BBA Aviation  skidded 5.7 percent after annual results, while Ted Baker, whose founder Ray Kelvin quit on Monday after allegations of misconduct, fell almost 6 percent.

Struggling department store group Debenhams slumped as much as 12 percent after it withdrew its full-year outlook and said talks with stakeholders to restructure its balance sheet would likely be disruptive.

"Debenhams is on the ropes at the moment, and continued tough trading conditions on the UK high street have delivered yet another blow to the ailing retailer," said Hargreaves Lansdown analyst Laith Khalaf.