FTSE 100 up on fresh China stimulus hopes

The blue chip index jumped in early trading, as headline mining shares such as Anglo American, Rio Tinto and Glencore rose, bolstered by expectations of market-boosting measures from China.

On the FTSE All-Share, insurer CPP Group topped the leaderboard, adding 14.29 per cent. It has been weighing up a turnaround plan after the City watchdog investigated claims of mis-selling.

Retail payments network PayPoint jumped 3.12 per cent.

Shanks Group, which yesterday issued a profit warning, rose 3.16 per cent, while takeover target Sportingbet rose almost three per cent in early deals.

TUI Travel, which this morning said it had enjoyed a strong summer period, rose 2.78 per cent.

A mixed bag made up the fallers this morning.

Sports retailer JD Sports fell 4.11 per cent, while cinema chain Cineworld dropped 2.41 per cent, as it announced it was to open three new cinemas across the UK.

Home shopping group N Brown shed 2.26 per cent, while recruiter Robert Walters declined two per cent. Fellow recruitment firm Hays slid 1.68 per cent.

Troubled miner Bumi continued its fall, shedding 1.67 per cent in early trading. On Monday it announced a financial probe into its Indonesian arm, claiming accounting irregularities.

Oil explorer Heritage Oil and Gas also sank in early trading.

With regards to UK banking shares, HSBC was up 0.97 per cent while Barclays rose 0.75 per cent. RBS slid 0.86 per cent and Lloyds Banking Group was off 2.36 per cent.

In Asia, the Nikkei closed 0.48 per cent up, while in the US the Dow Jones closed 0.33 per cent down.