FTSE 100 rises on mining rally

Tuesday, 18 August 2009 12:00

The FTSE 100 rose 0.74 per cent in early trade to 4,679.27 by 08:50 BST after yesterday's losses, led by a rally in mining stocks.

Xstrata led the rise, up by 4.04 per cent, followed by a 3.12 per cent rise at Rio Tinto, which has accepted a $2 billion bid for its Alcan division from Amcor.

The banking sector also made some gains, with HSBC up by 2.87 per cent and Royal Bank of Scotland trading 2.54 per cent higher.

However, several stocks were still in the red, including British Land.

Shares in the property firm dropped by 0.99 per cent after first quarter profit fell to £63 million from £74 million last year, and on a warning rental values could continue to slide.

Over in the US, Wall Street slumped as economy hopes faded, despite Japan's exit from recession.

The Dow Jones was off by two per cent, while the S&P 500 fell by 2.43 per cent.

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