Miners’ rally helps Footsie into black

Market report Emma Newlands

Mining stocks were on the rise after reports suggested an improvement in relations between the US and China.

It was reported that the two sides were holding private talks in the hope of averting a trade war, but no agreements had yet been made. With China being the largest consumer of most commodities globally, mining stocks were lifted.

Fresnillo, Anglo American and Glencore were among the top risers on the FTSE 100 by the close, rising by 4.2 per cent, 3.2 per cent and 2.9 per cent respectively.

This lifted the index as a whole, which closed 0.62 per cent or 47.91 points higher at 7,748.76.

In currency markets, sterling was down by 0.1 per cent against the euro at €1.120 and down 0.17 per cent against the dollar at $1.310.

On a busy day of corporate announcements, BP unveiled the first rise in its dividend for almost four years as it posted a rise in profits, sending shares 7.8p higher to 573.3p.

British Gas owner Centrica’s shares fell 3.95p to148.75p when it reported a 20 percent slump in earnings at its residential supply arm and raised the prospect of further tariff hikes.

Dixons Carphone flagged that its massive data breach was far higher than first reported, and shares fell 0.8p to 176.9p. Holiday giant Thomas Cook warned about a hit to annual earnings as the heatwave dented demand for last-minute trips abroad. Shares were down 0.95p to 95.9p.

The biggest risers on the FTSE 100 included Admiral Group up 77.5p to 1,981p and Direct Line Insurance Group up 10.8p to 343.9p. The biggest fallers included Just Eat down 53.4p to 793p and Kingfisher down 12.5p to 296.7p.