Sharecast - At 0825 BST, the FTSE 100 was up 0.2% at 7,770.95.
Victoria Scholar, head of investment at Interactive Investor, said: "It is a mixed start to trade across Europe with the FTSE 100 extending Friday’s gains, outperforming to log a slim gain. China-linked stocks like Burberry and Standard Chartered (LON:STAN) are at the top of the large-cap index following positive price action overnight from the Shanghai Composite and the Hang Seng.
"As the US debt ceiling deadline draws closer, President Biden and House Republican speaker Kevin McCarthy are expected to hold further talks today following a phone call on Sunday as investors pray that a US default will be averted.
"Meanwhile US-Sino trade tensions are escalating after Beijing banned Micron (NASDAQ:MU) Technologies from selling semiconductors to key industries in China, a move strongly opposed by Washington. Shares in Micron are trading lower by more than 5% in Frankfurt while the Hang Seng Technology index rallied sharply."
On home shores, data out earlier showed that house prices hit a fresh high in May as market conditions steadied.
According to Rightmove’s latest house price index, average asking prices rose by 1.8% in May, the biggest so far this year and notably higher than May 2022, when they increased by 1%. It was also a notable improvement on April’s 0.2% increase.
As a result, the average asking price of a property coming to market now stands at £372,894.
Year-on-year, house prices were 1.5% higher.
Sellers were increasingly confident about asking prices, Rightmove noted, as the market continued to recover from the impact of last autumn’s disastrous mini budget. Buyer demand was also 3% higher than in May 2019, prior to the pandemic, while agreed sales were just 3% lower.
Tim Bannister, director of property science at Rightmove, said: "This month’s strong jump in new seller asking prices looks like a belated reaction and a sign of increasing confidence from sellers, as we’d usually see such a big monthly increase earlier in the spring season.
"One reason for this increased confidence may that the gloomy start-of-the-year predictions for the market are looking increasingly unlikely: more likely the market will continue to transition to a more normal activity level this year following the exceptional activity of the pandemic years.
"Steadying mortgage rates and a generally more positive outlook for the economy are also contributing to more seller confidence."
In corporate news, NatWest (LON:NWG) was in focus after the UK government said it has cut its stake in the bank to 38.6% via £1.26bn off-market buyback deal.
BT (LON:BT) advanced as Citi reiterated its ‘buy’ rating on the shares and placed them on its ‘European Focus List’.
Software firm Kainos (LON:KNOS) gained as it reported a jump in full-year profit and revenue amid "robust" underlying demand.
Johnson Matthey (LON:JMAT) was also in the black after it signed a three-year strategic supply agreement with Hystar, a Norwegian high-tech hydrogen company, to ramp up renewable hydrogen production.
Ryanair (LON:0RYA) flew higher after saying it bounced back to a near-record annual profit following a "strong" post-Covid recovery. BA and Iberia owner IAG (LON:ICAG) and Wizz Air (LON:WIZZ) also rose.
On the downside, veterinary pharmaceuticals group Dechra Pharmaceuticals (LON:DPH) slumped as it warned that full-year underlying operating profit will be below guidance of £186m due to de-stocking in the US and UK.