Britain's top share index rose to the highest close in more than three weeks on Monday as miners and a jump in Tate & Lyle boosted the FTSE amid a wider rally in global stocks. The FTSE 100 index closed 0.34 percent higher, or 22.6 points at 6,712.7, with miners responsible for more than 10 of those points on the back of strong copper prices and after J.P. Morgan raised the price targets of various mining stocks.
Kazakhmys was up 4.2 percent, Xstrata rose 2.9 percent, Antofagasta surged 2.7 percent and BHP Billiton gained nearly 1.8 percent. European shares rose 0.3 percent. The pan-European FTSEurofirst 300 index has rallied 9.6 percent so far this year, outperforming the FTSE which is up 7.8 percent.
"Currently the UK certainly seems to be taking heart from the late rally in Wall Street on Friday, ignoring persistently high oil prices which can sometimes bear down and clinging on to the kind of backdrop of a bull market basically," said Tim Hughes, head of Sales Trading at IG Index.
US stocks ended higher on Friday after a stronger-than-expected jobs report indicated strength in the economy. Topping the gainers, sugar and sweeteners maker Tate & Lyle rose more than 4.7 percent after Credit Suisse upgraded it to "outperform" from "neutral" and raised its price target. British Airways added 1.1 percent, as Panmure upgraded the airline to "buy" from "hold".
British engine maker Rolls-Royce Plc added 2.5 percent after saying International Lease Finance Corporation (ILFC) had chosen its Trent 1000 engines in a deal worth at list prices. Bovis Homes sent a shiver through Britain's housebuilders, reporting a sharp slowdown in reservations and striking a cautious tone on the outlook amid rising interest rates.
Bovis tumbled 10.9 percent, while Persimmon slipped 4.1 percent, becoming the biggest FTSE 100 loser. Also in the sector, Barratt Developments dropped 2.3 percent, Taylor Wimpey fell 5.3 percent and Redrow shed 5.4 percent.
Premier Foods Plc said trading had been hit by interest rate rises and its shares shed 4.7 percent after analysts trimmed their earnings forecasts. The London Stock Exchange said the total number of trades on its electronic order book, SETS, increased by 62 percent in June to a daily average of 536,000.
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