London markets bounce higher on back of buoyant mining stocks

London stocks lifted after the bank holiday weekend on the back of a strong showing by mining firms and positive manufacturing figures.

The latest PMI data for the manufacturing sector showed strong growth and a positive rebound in the economy.

It was roundly welcomed by UK traders and boosted commodity prices, resulting in share rises for a raft of major London-based firms including Rio Tinto, Glencore, Evraz and the oil majors.

The FTSE 100 closed 57.85 points higher, or 0.82%, at 7,080.46 on Tuesday.

Chris Beauchamp, chief market analyst at IG, said: “US and UK investors have returned from their holiday in bullish form, picking up where they left off on Friday.

“In the UK, commodity prices have driven the gains for the FTSE 100, thanks to the strong showing in the US and Chinese manufacturing PMIs.”

Across the channel, the other major European markets also made gains as broad sentiment seemed to improve, regarding the economic recovery from Covid-19.

The German Dax increased by 0.95% and the French Cac moved 0.66% higher.

In the US, the main markets opened higher but slipped back later amid concerns over inflation.

Meanwhile, sterling rebounded in the afternoon session to close in positive territory despite early weakness.

The pound increased by 0.03% versus the US dollar to 1.417 and increased by 0.05% against the euro to 1.157.

Housebuilders, including Taylor Wimpey, Persimmon and Barratt, made gains on Tuesday after the latest figures from Nationwide showed that house prices soared by 10.9% annually in May.

In company news, waste and recycling giant Biffa saw its shares climb despite tumbling to a hefty annual loss as it reported trading figures “ahead” of its expectations.

The firm highlighted a positive outlook despite swinging to a pre-tax £52.8 million loss in the year to the end of March, down from a £56.4 million profit in the previous 12 months.

Shares in the business rose by 8p to 300.5p at the close of play.

Elsewhere, DIY retailer Wickes also improved in value as it said a jump in sales over recent months means it is set to post profits at the top end of its forecasts.

The company, which was only spun off from Travis Perkins just over a month ago, said it benefited from a “notably strong” April.

It closed 12p higher at 268p.

Subprime lender Amigo tumbled further, falling 1p to 7.3p, after it said it was facing insolvency after the high court rejected its rescue scheme last week.

The price of oil ticked higher on the back of the PMI data, rising to more than 71 US dollars a barrel before its gains were pared back in the afternoon.

Brent crude increased by 1.2% to 70.15 dollars per barrel.

The biggest risers on the FTSE 100 were Anglo American, up 126.5p at 3,261.5p, Antofagasta, up 62p at 1,606.5p, Rio Tinto, up 241p at 6,305p, and WPP, up 36.5p at 1,010.5p.

The biggest fallers on the FTSE 100 were HSBC, down 9p at 446.3p, Burberry, down 28p at 2,108p, London Stock Exchange, down 92p at 7,482p, and AstraZeneca, down 89p at 7,957p.