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The Guardian - UK
The Guardian - UK
Business
Juliette Garside

Miners lead FTSE rally as China returns to modest growth

A return to growth for Chinese manufacturing helped the FTSE 100 rise 0.54% or 28 points at 5517 in early morning trading.

Commodity stocks were boosted by the news that after three months of contraction, China's vast manufacturing sector expanded moderately in October.

Copper miners led the FTSE's 10 fastest risers, with Antofagasta in pole position, up 47p at £11.41, while Kazakhmys rose 33.5p to £8.90. Rio Tinto was in fourth position, up 45p to £15.50.

HSBC's China Flash Purchasing Managers Index, published on Monday rose to 51.1 in October, from September's 49.9, allaying fears of an abrupt slowdown in the world's fastest growing economy.

The news pushed Brent Crude oil above $110 a barrel yesterday, and it was up again this morning, by 0.46% to $110.6.

Traders remained positive about the prospect of a concrete European bailout plan later this week. European leaders met in Brussels on Sunday, and hope to reach agreement on bank recapitalisation and the creation of a larger bailout fund. Jimmy Yates, head of equities at CMC Markets, told Reuters:

We've seen equities open higher and bonds falling in early trade, although the lack of volume suggests a lack of conviction, as investors hedge their bets that a resolution can be found to Europe's debt crisis on Wednesday.
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