The U.K.’s main stock index climbed following a three-day weekend, led by metals and mining plays as a U.S.-Mexico trade deal brightened the outlook for stocks particularly sensitive to the global economy.

Investors were also playing catch-up to gains posted elsewhere on Monday. European markets had jumped then as the U.S. and Mexico announced a new trade deal and the S&P 500 SPX, +0.77% and Nasdaq Composite COMP, +0.91% indexes closed at record levels. The new trade deal could ease some of the tensions that have kept a lid on European markets this year.

How markets are performing

The FTSE 100 UKX, +0.70% gained 0.7% in early morning trade after adding 0.2% on Friday and being closed Monday for a bank holiday. The British blue-chip gauge is showing a drop of 0.7% for the year to date.

Other European markets were mixed.

The pound GBPUSD, +0.0698% was buying $1.2894, compared with $1.2894 late Monday and $1.2844 late Friday in New York.

More Brexit chatter

U.K. Prime Minister Theresa May insisted a no-deal Brexit “wouldn’t be the end of the world” days after Philip Hammond, the chancellor of the exchequer, warned it would add to U.K. borrowing costs and curb growth. While leaving the European Union next March without a new trade deal “wouldn't be a walk in the park,” she said, the U.K. could still make it an economic success.

The U.K. government last week presented the first of many documents outlining advice for U.K. businesses in the event of a messy breakup with the block.

Read: Gear up for a no-deal Brexit: 5 areas investors should watch

Stocks in focus

Metals and mining stocks are among the day’s biggest gainers, given their sensitivity to the global economy. Anglo American AAL, +3.53% and Evraz EVR, +4.11% are both more than 3%, followed by gains in Glencore GLEN, +2.45% and Fresnillo FRES, +2.68%

Shares in Bunzl BNZL, +2.06% are up 1.8% after the distribution and outsourcing group’s six-month earnings report included revenue that topped analysts’ forecasts.

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