Fed chair Janet Yellen interest rate comments send mining shares soaring

 
Jessica Morris
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Janet Yellen Holds News Conference On Fed Interest Rate Decision
Yellen said that the Fed will "proceed cautiously" when deciding their policy actions in the coming months (Source: Getty)

US Federal Reserve chair Janet Yellen's dovish coos over future interest rates rises helped send London-listed miners higher today.

Yesterday Yellen said that the Fed will "proceed cautiously" when deciding their policy actions in the coming months.

Metal prices are slightly down today, however Yellen's comments weakened the greenback making dollar-priced commodities cheaper for holders of foreign currencies.

The dollar index was down 0.3 per cent this afternoon, and it's sliding against most major currencies.

Her comments helped push the broader FTSE 350 mining index 6.3 per cent to 8,993 points.

"Global economic growth is spluttering and the idea that we'll see another rate hike from the Fed in the short term is being kicked into the long grass," Tony Cross, market analyst at Trustnet Direct, said in a note.

"This is also driving the dollar lower so commodity stocks are finding widespread support with the natural resource plays scattered across the top of the board."​

Lonmin led the charge with its shares rising 12.6 per cent to 127.50p in early afternoon trading, while Anglo American added 10.3 per cent to 8,994.9p per share.

Anglo was also helped by South Africa's state-owned pension fund, Public Investment Corporation, upping its stake in the miner above 11 per cent today.

Meanwhile, Antofagasta was 4.7 per cent higher at 475.40p, while BHP Billiton rose 6.8 per cent to 801.30p and Glencore added 6.9 per cent to 153.75p.

Yesterday Yellen said that the Fed will "proceed cautiously" when deciding their policy actions weighed on greenback.

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