London’s blue chip index reached a high of as much as 7,423.20 points in morning trading as the mining sector surged, with a rally in oil and commodity prices contributing.
Gold prices jumped last night after the US Federal Reserve took a more dovish stance than markets expected, despite raising interest rates. Futures for the yellow metal rose to highs of $1,228.70 per troy ounce before falling back slightly.
However, the main contributor to the FTSE's strength was Anglo American. Shares in the London-headquartered miner rose by over 10 per cent at the time of publication as investors reacted to the surprise plan to purchase of £2bn in shares in the miner by Indian billionaire Anil Agarwal.
Agarwal said the 12 per cent stake was “an attractive investment” for his family trust, according to Reuters. Agarwal is the founder of Vedanta Resources, although the investment will be made by his controlling family trust, Volcan Holdings, rather than the rival mining company.
The gains came despite the pound strengthening, after weakness in the US dollar. The dollar fell sharply on the Federal Reserve's more measured approach to rate hikes.