Miners lead FTSE up after China boost

Markets have risen this morning triggered by hopes that a deal to resolve the Eurozone debt crisis can be put together while manufacturing data showed China's growth is picking up.

Although a weekend summit of Eurozone leaders was inconclusive with bickering clouding the talks. The skeleton of a deal was agreed with a summit to finalise details set for Wednesday.

Eurozone leaders accepted that they needed force banks to protect themselves against future losses, and to shore up the single currency's bailout fund.

The Cac 40 index in France and the Dax in Germany were both up more than 0.5 per cent in early trading.

In London miners led the risers as figures showing that the pace of Chinese manufacturing growth had speeded up again in this month helped to lift the price of metals.

Antofagasta was the biggest riser, up four per cent, while Kazakhmys rose more than three per cent along with Rio Tinto and Anglo American.

Lloyds was the fastest climber among financial stocks, up 3.2 per cent while Barclays was up 1.3 per cent and RBS 1.4 per cent.

On the down side BP and temporary power supplier Aggreko nudged down by around one per cent.

Hong Kong's Hang Seng index ended the day 3.8 per cent higher, while in Tokyo the Nikkei ended 1.9 per cent up.

The price of copper — a benchmark of market sentiment over the global economy — rose six per cent in Shanghai trading, as the positive manufacturing data came through.

But JP Morgan said in a note that some market gains could be short lived.

"The European Union headlines will continue to set the market tone but we note that investors appear to be paying up for 'safety' already," it said.

The euro was largely unchanged over the weekend, holding firm against the dollar at about $1.39.

Across the Atlantic later the September Chicago Fed index is due for release.