Business

FTSE jumps on good China trade figures

Market trader (file picture) Image copyright Getty Images

(Close): Mining and banking stocks led the FTSE 100 over 100 points higher, encouraged by better economic news out of China.

At the close the FTSE 100 was up almost 2%, to 6,362.89 its highest level in more than four months.

Mining and other commodity shares gained after the release of stronger-than-expected Chinese trade figures.

Evraz, the steel and mining company was the biggest riser, up 11.8% and the independent European oil group Tullow Oil gained 11%.

Anglo American was up 9.7% and BHP Billiton rose 8.9%.

Among the banks Standard Chartered and HSBC gained 10.7% and 6.6% respectively. Both of them have strong presences in China and the region.

Shares in Tesco fell 7.9% despite the retail giant reporting its first quarter of UK sales growth for three years.

Tesco's chief executive Dave Lewis warned the market remained "challenging and uncertain" and said its continued investment in prices to remain competitive would slow its profit improvement "particularly in the first half".

Outside the FTSE 100, shares in Premier Foods dived 27% after US company McCormick said it had scrapped plans to make a takeover bid for the Mr Kipling maker.

On the currency markets, the pound slipped 0.46% against the dollar to $1.4210, and gained 0.5% against the euro to €1.2598.