Miners’ shares soar as China boosts market

Market report Hannah Burley

Global stocks surged after the Chinese government unveiled a stimulus package of policies, including tax cuts and the sale of special bonds, to boost domestic demand.

Metal prices powered ahead due to the expectation of a spike in demand from China, which in turn meant a clamour for mining stocks, with Anglo American, Glencore and BHP Billiton all up by more than 5 per cent at the market close.

Fiona Cincotta, senior market analyst at City Index, said: “The unveiling of a stimulus package to lift domestic demand in China, the world’s biggest consumer of metals, is going some way to counter trade war jitters.

“A package of tax cuts, research spending, special bonds, infrastructure spending and a pledge to use tax policy to stimulate growth shows that the authorities in China are concerned over the impact that the developing trade war will have on growth and are taking measures to counteract a weakening economy.”

The FTSE 100 charged ahead, closing the day 0.7 per cent higher at 7,709.05.

Meanwhile, Hammerson unveiled plans to offload £1.1 billion in assets and hand millions back to shareholders in a move meant to appease investors after pre-tax profits plunged 80 per cent in the six months to 30 June.

The biggest risers on the FTSE 100 were BHP Billiton, up 5.7 per cent to 1,702.4p, Anglo American, up 5.6 per cent to 1,695p and Glencore, also up 5.6 per cent to 327.4p.

The biggest fallers for the day included National Grid, down 2.3 per cent to 818p, United Utilities, down 2 per cent to 706.6p, and SSE, down 1.9 per cent to 1,336.5p.