FTSE 100 index rises to a new eight-week high

Events and comments from the US, Europe and Chile helped the FTSE 100 rise to a new eight-week high yesterday.

The blue chip index in London closed up 85.73 points – or 1.17% – to 7,443.04.

Starting in the US, investors were pleased to see a tweet from President Donald Trump, who said he “had a very good telephone conversation” with China over the ongoing trade war. He also confirmed he would meet Chinese premier Xi Jinping later this month at the next G20 summit.

In Europe, Mario Draghi, head of the European Central Bank, hinted low interest rates would continue and there would be a boost to the ECB’s asset purchase programme.

This sent markets across the world up, with the German Dax closing up 2% and the French Cac up 2.2%.

In Chile, a strike by copper miners sent the material price soaring. This helped shares in the FTSE 100’s biggest miners rise as the prospect of making more money from the higher prices got investors excited.

Anglo American closed up 2.7% at 2,165p, and BHP Group, Antofagasta and Rio Tinto were also on the up.

The pound continued its bad run against the dollar, up 0.09% at $1.2545 dollars. Against the euro, the pound was up 0.28%, worth 1.1203 euros.

Annual profits were up at equipment rental firm Ashted Group. Its shares were the biggest risers in the FTSE 100, closing up 6.1% at 2,081p.

The biggest faller was cigarette maker Imperial Group, down 2.5% to 1,903p as investors reacted to suggestions that levels of nicotine in products could be reduced.