Wednesday, 01 Jul 2009 17:13
Oil prices rise boosts FTSE 100
The FTSE 100 rose 2.15 per cent to 4,340.71 as a rise in oil and metal prices sparked a rally in commodities.
Vedanta Resources was up by 9.47 per cent, Antofagasta was trading 5.62 per cent higher and Eurasian Natural Resources was up by 5.42 per cent.
Anthony Grech, market strategist for IG Index, said: "After the worst UK GDP figures in 51 years, the FTSE put on a defiant performance today.
"Mining and energies led the charge on the back of strong commodity prices. However, this comes at a time when many companies are trying to squeeze their budgets - after posting losses of £402 million, and asking staff to work a month unpaid, British Airways have been in talks with BP and Shell to reduce refuelling costs.
"So while the current fuel prices trend may spell out a bright future for the energy and mining sector, investors will be noting that these gains are being made on the shoulders of others."
Shares in British Airways fell by 0.56 per cent, while Thomas Cook Group was down by 0.24 per cent.
Over in the US, the higher price of oil and improved manufacturing data boosted stock markets.
The Dow Jones was up by 1.5 per cent in morning trading, while the S&P 500 was up by 1.3 per cent.