Gold surge helps market make gains

A strong showing by commodity stocks helped to push the London markets higher despite broadly disappointing service sector figures across Europe.

Another surge in the price of gold and a drop in US oil inventories helped to spark life into mining stocks.

Meanwhile, service PMI figures across Europe were down slightly on expectations, but the indices across the continent were boosted by more positive economic updates in the US.

The FTSE 100 closed 68.72 points higher at 6,104.72 points at the end of trading.

Traders on both sides of the Atlantic also remained particularly optimistic that politicians in the US will reach an agreement in relation to the coronavirus relief package.

David Madden, market analyst at CMC Markets UK, said: “The negotiations between Republicans and Democrats are still dragging on, and there isn’t much hope that things will be resolved quickly, but ultimately there is a sense that a deal will be reached in the end.

“The FTSE 100 was largely steady for the final few hours, while the Dax 30 and the Cac 40 handed back some of their earlier gains.”

Across the Atlantic, the Dow Jones opened higher after the US’S particularly strong service sector figures, positivity surrounding progress for Johnson & Johnson’s coronavirus vaccine and comments from President Donald Trump that it will report strong jobs data-tomorrow.

WH Smith saw shares nudge higher after it announced plans for a major restructure, which is set to result in around 1,500 job cuts.

The high street retailer said sales at its travel arm were particularly badly hit by closures in the face of the coronavirus outbreak.

Shares in the company moved 14p higher at 999.5p at the close of play.

Elsewhere, William Hill told investors it plans to close 119 betting shops, with only 12 job losses, as customers move away from high street locations. It closed 10.45p higher at 127.6p as a result.

Insurer Hastings closed significantly higher after it agreed to a £1.7 billion takeover by a consortium involving the firm’s largest shareholder. It saw shares rise 38p to close at 253p.