Mining rally helps lift FTSE to fresh ninemonth high

A standout performance from the FTSE 100’s mining companies helped the index rise to its highest point since May last year.

The miners gained on Wednesday thanks to renewed optimism from China, which heavily drives demand for their materials.

“The rebound in Chinese markets is catching the attention this side of the globe, as mining stocks in London lead the way higher,’’ said Chris Beauchamp, chief market analyst at online trading platform IG.

“After huge outflows from Chinese markets over the last year, it looks like investor confidence in the outlook is returning, along with hopes of renewed raw material demand.’’

Shares in Glencore, Antofagasta and Anglo American all rose by between 4.6%-5.3%.

The FTSE 100 rose 24.36 points, or 0.31%, to end the day at 7,772.17.

In New York shortly after European markets had closed the S&P 500 was trading down 0.07%, while the Dow Jones was 0.38% higher.

“Sector rotation continues in the US, as the Dow Jones manages to make gains even as the Nasdaq 100 comes under some pressure,’’ Mr Beauchamp said.

“The rally in stocks has moved into a choppier phase, a change from the relentless gains of the fourth quarter of 2023, and the sideways price action could intensify as we begin the run towards next week’s Fed decision.’’

At the end of the day in Europe, Frankfurt’s Dax index was 0.02% down, while the Cac 40 in Paris had closed up 0.62%.

On currency markets the pound had gained 0.02% against the dollar at 1.2796 and had dropped 0.17% against the euro at 1.1688.

In company news, shares in Metro Bank closed down 4.94% after the high street lender announced the abandonment of its sevenday opening hours and a new round of layoffs.

The bank is cutting around 1,000 jobs and said that further staff cuts are possible. It will reduce its workforce of 4,266 by 22% by mid-april. The business had previously been expected to implement a 20% headcount cut.

The biggest risers on the FTSE 100 were Antofagasta, up 96p to 1,914p, Glencore, up 19.25p to 419.2p, Anglo American, up 85.8p to 1,937p, Entain, up 14.6p to 777p, and United Utilities, up 16.5p to 1,057.5p.

The biggest fallers on the FTSE 100 were JD Sports, down 4.8p to 113.1p, Vodafone, down 2.78p to 66.52p, Rentokil, down 15.2p to 479.6p, Admiral Group, down 83p to 2,650p, and Rightmove, down 16.8p to 560.2p.