Mining giant leads charge as oil prices rise

Mining giant Anglo American led the charge on the London market as bullish commodity stocks were cheered on by rallying oil prices.

The FTSE 100 Index was 63.8 points higher at 6,273.4, as the miners dominated the biggest risers on the top tier following a 1.9% leap in the price of oil to $50.56 a barrel.

Brent crude prices were on the up after supply from Nigeria came under pressure on Friday following militant attacks on its oil infrastructure.

Commodity stocks were also in the ascendency as hopes continued to fade of a US interest rate hike this month following Friday’s worse-than-expected US non-farm payroll figures.

Anglo American surged 11%, while Rio Tinto came in more than 6% higher, as investors warmed to the idea of commodities enjoying cheaper borrowing costs for longer.

European markets were relatively flat, with Germany’s Dax 0.2% higher and France’s Cac 40 making marginal gains of 0.04%.

Brexit fears continued to take their toll on the pound, with sterling slumping to fresh lows in morning trading after two polls showed rising support among voters for leaving the European Union.

The pound hit a three-week low against the dollar, falling as much as 0.9% to $1.43.

A Yougov poll showed that 45% of voters favour Brexit, with 41% opting to remain.

Brexiters were also ahead in an Observer/Opinium poll by 43% to 40%.

But sterling later regained some poise, down 0.4% against the dollar at 1.444.

The pound was also down 0.4% against the euro at 1.272.