Mining stocks pull up FTSE 100
Mining giants helped push up the FTSE 100 this morning as China announced increased local government spending.
The miners were also boosted by Chinese iron prices which jumped by nearly six per cent in today’s trade.
Evraz, Antofagasta, Rio Tinto, Gencore and BHP rose between two and four per cent each. They were all among the highest risers on the blue chip index.
It helped push the FTSE 100 up more than 39 points, or around half a per cent, this morning to 7,415.
The price of iron ore futures for September delivery on the Dalian exchange increased 5.9 per cent to 760.5 yuan.
It comes after months of increases in the iron ore price, after a mining accident in Brazil killed hundreds.
More than 300 people were killed or missing after a dam operated by iron producer Vale burst in January. The disaster released mining waste from the dam, creating a wave which buried communities.
Meanwhile Beijing revealed it will give local governments the power to invest more in infrastructure projects. They can now use proceeds from special bonds for motorways and railways, to strengthen the economy.