FTSE 100 recovers to close higher

Monday, 03 November 2008 12:00

A surge in mining stocks helped the FTSE 100 to close slightly higher than Friday's level.

The UK's benchmark index closed at 4,443.28, just over 65 points, or 1.51 per cent, higher than the previous session and continuing a rally started on Tuesday.

Financial stocks led an earlier slump, with the Royal Bank of Scotland closing 6.07 per cent lower, Barclays down 4.08 per cent and Lloyds TSB down 2.73 per cent.

However, mining stocks boosted the FTSE 100 and eventually took it into the green.

Kazakhmys closed 18.56 per cent higher, Eurasian Natural Resources was up 11.96 per cent and Xstrata rose 9.86 per cent.

Ryan Kneale, market analyst at BetsForTraders.com, said: "The mood of the market is most definitely improving on what seems like a daily basis.

"In the UK and in Europe the hope of more interest rate cuts later this week is also adding to the positive trader sentiment. Also boosting sentiment are the commodity stocks with firmer commodity prices boosting mining and energy groups."

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