UK equities make decent gains in early trade on Tuesday with the investor mood boosted by official data showing Chinese inflation holding steady and producer price deflation easing in April. China’s consumer price index rose 2.3% year-on-year in April, unchanged from the previous month and in line with analyst estimates.

The FTSE 100 index adds a little more than 50 points, or a bout 0.85%, to 6,168. Other UK indices are also well into the green.

Heading the blue-chip risers is outsourcer Capital (CPI), 4.3% ahead at £10.68, as it announces a strong start to 2016 as well as the disposal of its Fish Administration business. Organic growth is expected to hit 4% in the calendar year and the company's bid pipeline stands at around £4.6 billion.

Aureus Mining (AUE:AIM) is facing potential environmental problems after a toxic water spill from its mine in Liberia. Gold production has stopped pending an investigation, sending the shares down 40.4% to 3.88p.

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Herencia Resources (HER:AIM) surges 112.5% to 0.04p after agreeing to sell its Paguanta polymetallic mine in Chile for up to $3.2 million to Golden Rim Resources. The suitor will pay up to $2.1 million towards some liabilities.

Investors are keen to get a taste of premium chocolatier Hotel Chocolat (HOTC:AIM), the omni-channel retailer, co-founded by CEO Angus Thirlwell and Development Director Peter Harris, whose shares are bid up 29% to 191p (issue price 148p) in debut AIM dealings. For more on the British cocoa grower's growth story, read our recent web article here.

A profit warning at micro cap project manager Driver (DRV:AIM) sees shares slump 33.% to 44p. Profitability in the year to 30 September is likely to be short of market expectations because of restructuring charges and bad debt provisions, though management says revenue has strengthened after a soft patch around the turn of the year.

Franchised motor retailer Cambria Automobiles (CAMB:AIM) accelerates 9.3% higher to 76.5p as stellar interims to end-February again show sales and profits substantially ahead year-on-year. Taxable profits powered 40.1% higher to £4.6 million in the half and analysts push through upgrades as Cambria says it expects full-year profits to top market expectations, having traded strongly in the key March plate change month.

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Musical equipment retailer Gear4music (G4M:AIM) gains 1% to 132.5p after swinging to a pre-tax profit of £6,000 in the year to 29 February from a loss of £797,000 the previous year, with revenue up 46% to £35 million. The group says it has seen strong sales momentum in the first two months of the new financial year and is confident for the year ahead.

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Issue Date: 10 May 2016