FTSE up as China package plan boosts commodities

Mon Nov 10, 2008 8:57pm GMT
 
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By Rebekah Curtis

LONDON (Reuters) - The FTSE 100 .FTSE rose 0.9 percent in a global equities rally on Monday, powered by mining stocks after China's almost $600 billion (382 billion pound) stimulus package plan boosted hopes of solid demand for commodities.

The share index .FTSE ended 38.96 points higher at 4,403.92 points, but way off its day's high of 4,524.87 points.

Metal prices surged after China approved 4 trillion yuan (373 billion pounds) in new government spending, and the G20 group of nations pledged to take all necessary steps to put financial markets back on their feet.

"The authorities are throwing everything they can at the situation," Graham Secker, UK equity strategist at Morgan Stanley in London, said of the global effort to prop up economies.

"We still think the market's reasonably positioned to go a bit higher. Things are still fairly fragile out there but money markets continue to improve in passing on some of the policy responses from the central banks," he added.

Miners topped the gainers, with Xstrata (XTA.L), BHP Billiton (BLT.L) and Anglo American (AAL.L) leaping between 10.6 and 11.6 percent as copper and gold prices forged higher.

Firmer oil prices helped to lift the energy sector, with crude gaining following the news of China's stimulus package and Saudi Arabia's pledge to cut supplies to Asia in December.

BG Group (BG.L), BP (BP.L) and Royal Dutch Shell (RDSa.L) advanced between 0.9 and 1.9 percent.  Continued...

 
Trading specialists work at the Goldman Sachs booth on the floor of the New York Stock Exchange October 30, 2009.   REUTERS/Brendan McDermid
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