FTSE 100 opens higher as Brent crude oil price rallies

Emma Haslett
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An oil rally pushed up the FTSE 100 (Source: Getty)

Markets opened cautiously higher this morning, as investors cheered a decision by the Federal Reserve's Open Markets Committee to hold interest rates - and oil rallied.

The FTSE 100 crept up 0.62 per cent, to 6,212 points, pushed up by miners again. Anglo American jumped 9.8 per cent to 541.1p, while Glencore rose 7.6 per cent to 155.4p and Antofagasta rose 6.9 per cent to 530.7p.

At the other end of the scale, British American Tobacco was the biggest faller, dropping 2.8 per cent to 4,000.7p, after George Osborne confirmed plans to hike duty on tobacco products by two per cent above inflation and introduce a minimum price for cigarettes.

Still, good news on the jobs front and the FOMC's dovish tone last night kept markets in a positive mood today - helped by an oil rally off the back of rumours Opec is about to agree to freeze output.

"The index [is] arguably back on an oil-led leash," said Connor Campbell, financial analyst at Spreadex.

"Luckily for the FTSE Brent Crude has continued the rather robust rebound it began on Wednesday, the black stuff sporadically pushing above $41 per barrel after having slipped away from its recent peak at the start of the week thanks to a combination of a gloomy Opec outlook and continued intransigence from Iran over a potential output freeze.

"That left the FTSE with a half a percent rise after the bell, the UK index once again teasing 2016-highs."