Industrials rally boosts London markets

A rally among mining stocks dug the foundations for a bullish day on London markets today.

The capital’s premier FTSE 100 index climbed 0.96 per cent close at 7,535.78 points, while the domestically-focused FTSE 250 index, which is more aligned with the health of the UK economy, finished 1.1 per cent higher at 22,167.94 points.

Miners led the FTSE 100 higher today as commodity prices continued their upward trend since the start of the year.

Nickel hit a 10-year high recently, while oil prices have breached $90 a barrel for the first time in seven years.

Mexican miner Fesnillo topped the capital’s top index today, soaring 3.97 per cent.

Glencore, Rio Tinto and Anglo American all threatened the summit of the biggest risers’ tables, adding more than 3.15 per cent each.

Analysts suggested investors have shifted their focus from looming rate hikes toward earnings, lifting general market sentiment.

Susannah Streeter, senior investment and market analyst at Hargreaves Lansdown, said: “There seems to be renewed enthusiasm for some of the stocks investors had taken flight from in fright about the impact of higher interest rates.”

Shell was among the best performers on the FTSE 100 as investors poured into the oil giant ahead of its full-year earnings tomorrow.

Meanwhile, on the FTSE 250, travel stocks were a bright spot.

Train ticket booking app Trainline and travel agent Tui led the mid-cap index higher, gaining 4.2 per cent and 4.36 per cent respectively.

The pound gained ground against the dollar, strengthening 0.5 per cent to buy $1.3512.