Miners have had a rough week but are regaining some ground on hopes of further boosts to stimulate the global economy.
Worries about a slowdown in China and the US have left commodity companies floundering, while the problems of the eurozone still drag on. But with the G20 meeting in Washington amid a growing argument between growth and austerity measures, there is some hope that the eurozone could introduce its own quantitative easing. At the very least Bundesbank chief Jens Weidman has hinted the European Central Bank could be prepared to reduce interest rates.
So after five days of falls the FTSE 100 is currently 23.28 higher at 6266.95. Mike van Dulken, head of research at Accendo Markets, said:
A slight rebound in Asia overnight has generated some excitement, but I'm not convinced.
Vedanta Resources has risen 49p to £11.34, Eurasian Natural Resources Corporation is up 6.5p at 236.3p and Randgold Resources has climbed 114p to £47.27 as gold edged higher again after its recent plunge. Anglo American has added 20p to £15.82 after it reported iron ore, copper and coal production increases in the first three months of the year.
Banks are also better as investors dip their toes into riskier waters. HSBC is 13p higher at 676.3p and Barclays, which cut the last ties with the Bob Diamond era on Thursday by announcing the departure of investment banking boss Rich Ricci, is 1p better at 284.75p.
But GlaxoSmithKline, which moved 3% higher on Thursday after its lung drug Breo gained US approval, is now heading in the other direction.
Its shares are down 13.5p at 1644.5p as the Office of Fair Trading claimed the company and three rivals had struck deals to delay the launch of generic competition to anti-depressant Seroxat. The company said:
GSK supports fair competition and we very strongly believe that we acted within the law, as the holder of valid patents for paroxetine [branded as Seroxat], in entering the agreements under investigation. As we have just received the [OFT's] statement of objections, we will need time to carefully review it before considering any further action.
