FTSE 100 charges towards 14-month high as miners gains

 
Jessica Morris
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The FTSE 100 hit a fresh 2016 high on Friday (Source: Getty)

The FTSE 100 charged higher this morning, as miners clambered towards the top of the index.

It was 0.46 per cent higher to 6,822.53 points this morning, after hitting a one-year high on Friday. It had been buoyed by a BoE interest rate cut, £70bn of additional quantitative easing and a new round of cheap loans which could pump £100bn of cash into the UK economy.

Barclays led the charge as it shook off last week's losses following the results of the European Union's stress test. The investment bank's shares were up 3.22 per cent to 156.90p.

BHP Billiton jumped 3.55 per cent to 1,050.25p, while Anglo American swelled 2.83 per cent to 884.35p and Antofagasta rose 2.72 per cent to 528p.

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The smaller FTSE 250, which is more domestically focused, was up 0.93 per cent to 17,627.34 points. The index had also risen to its highest level this year on Friday.

Industrial turnaround business Melrose swelled 10.29 per cent to 755.50p per share this morning, after it came a step closer to acquiring US air conditioning company Nortek. A "window shop period" expired without another rival bid being made.

Challenger bank Shawbrook jumped 6.26 per cent to 201.9p after it revealed profits rose 14 per cent to £38m in the six months to 30 June.

Oil received support from renewed calls by some Organisation of Petroleum Exporting Countries for an output freeze deal to accelerate the market recovery.

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"OPEC members including Venezuela, Ecuador and Kuwait are said to be behind this latest reincarnation. But just like previous endeavours, it seems doomed to fail," said Matt Smith of ClipperData.

This came despite fresh data out of China which heightened concerns about the global economy. Chinese imports fell 4.4 per cent year-on-year in July, while imports plunged 12.5 per cent.

Augustin Eden, research analyst at Accendo Markets, said in a note: "Chinese trade data disappointed, although a negative start was likely averted with market watchers noting that data lags reality."

"Asian markets have in fact outperformed after Friday's impressive US jobs report. This served to strengthen the US dollar on heightened expectations for a 2016 Fed rate hike, which in turn weakened Asia Pacific currencies to buoy equity indices there."

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