U.K. stocks surged Tuesday, with miners leading the charge higher after Chinese inflation numbers were seen as leaving enough room for further monetary easing.
The FTSE 100 index jumped 0.9% to 6,170.33, recovering from a 0.2% fall on Monday.
Topping the list of gainers, shares of Anglo American PLC rallied 4.7%. Fellow miners BHP Billiton PLC and Rio Tinto PLC were up 2.4% and 2.3%, respectively.
The advances for the mining sector came after data showed China’s consumer price index rose 2.3% in April from a year earlier, unchanged for a third straight month. Analysts noted that April’s inflation figure was well below Beijing’s 2016 target ceiling of 3%, leaving plenty of room for the People’s Bank of China to continue its easing policies.
Anything that indicates growth in China tends to support miners and metals, as the country is a major user of natural resources. Metals prices were also higher across the board Tuesday.
Among other companies on the rise in London, shares of Capita PLC climbed 4.6% after the outsourcing-services provider said it’s on track to meet expectations for 2016.
EasyJet PLC added 1.8% after a wobbly start to the day. The budget airline said it swung to a first-half loss after terrorist attacks in Paris and Brussels slowed bookings, but it also raised its dividend payout to 50% of post-tax income.
At 9:30 a.m. London time, or 4:30 a.m. Eastern Time, attention turns to the release of U.K. trade data for March.
Source: MarketWatch
