FTSE 100 OPEN: Miners rise on fresh China stimulus hope
London’s leading stocks have risen in early trading after expectations grew that China will launch a fresh stimulus programme.
The FTSE 100 was up 31.67 points to 5,388.01 as of 0813 BST, tracking earlier gains seen in Asian markets.
Investor sentiment was buoyed by suggestions that China will embark on measures to support its economic growth. The country’s official Shanghai Securities News reported that Beijing is fast-tracking approval for infrastructure investments, while China’s largest banks have recently accelerated lending.
Miners led the FTSE’s early gains on the hope that any stimulus in China – the world’s second largest economy and its largest consumer of commodities – would boost the demand for metals.
Steel producer Evraz went up 2.20% to reach 306p, making it the strongest riser after the market opened.
Silver miner Fresnillo advanced 2.19% to 1,351p, while airline holding company International Consolidated Airlines rose 2.12% to 140p. Mineral resource group Rio Tinto gained 1.96% to 2,913.5p and copper miner Antofagasta rose 1.93% to 1,058p.
The morning’s biggest fallers were plumbers’ merchant Wolseley, water company Severn Trent, asset manager Man Group, energy firm Centrica and telecommunications group Vodafone.