Mining firms lift FTSE 100 higher amid cautious global sentiment

Strong performances by mining firms helped to guide the London markets into the black after a testing start to the week.

It finished as a rare bright spark amid a subdued session for the global markets which were incredibly cautious as US-China trade talks stalled.

The FTSE 100 closed 37.4 points higher at 6,127.44 at the end of trading on Monday.

Connor Campbell, financial analyst at Spreadex, said: “It was a stodgy session for all bar the FTSE, which benefited from its hefty clique of mining stocks.

“It appeared that the index’s successes were linked to the latest lunge from gold.

“The safe haven instrument became appealing after another weekend of disappointing or downright worrying headlines.

“And with copper also up 2%, the FTSE’s miners started the week on the front foot.”

The other major European markets were asleep for most of the session, edging only marginally higher as travel restrictions continued to weigh on sentiment.

The German Dax increased by 0.17%, while the French Cac moved 0.21% higher.

Across the Atlantic, the Dow Jones opened in the red on news that US-China trade talks have been postponed indefinitely.

Meanwhile, sterling edged slightly higher against the dollar as it remained broadly flat due to wider caution in the markets.

The pound rose 0.1% versus the US dollar at 1.310 and was down 0.11% against the euro at 1.103.

Travel firms were among the biggest fallers after airlines easyJet and Ryanair both confirmed knock-on impacts from recently imposed travel restrictions.

Ryanair closed 0.68p lower at 10.87p after it said it would reduce its flight capacity by a fifth over the next two months after new restrictions resulted in weak booking activity.

Elsewhere in company news, meat supplier Cranswick leapt higher after it raised its outlook as increased home cooking buoyed sales for the previous quarter.

The pork and chicken supplier said revenues increased by 24.8% in the 13 weeks to June 27, against the same period last year.

Shares closed 252p higher at 4,076p at the close of play.

Spirits giant Diageo rose after it agreed to buy a gin brand co-owned by Hollywood actor Ryan Reynolds as part of a deal worth up to 610 million US dollars (£466 million).

The Tanqueray owner saw shares close 32p higher at 2,635p after sealing the deal to acquire Aviation American Gin, which has been co-owned by the Deadpool actor since 2018.

Amigo finished 0.37p higher at 8.75p after the struggling firm’s lender extended its deadline for a financing facility.

Construction and engineering group Costain closed 3.5p lower at 54p after its half-year results were delayed to September 14 as it waits for a ruling.

The price of oil moved into the black on reports that state-controlled companies in China will increase their oil imports from the US for August and September.

The price of a barrel of Brent crude oil increased by 0.67% to 45.1 US dollars.

The biggest risers on the FTSE 100 were Persimmon, up 79p at 2,613p, Polymetal, up 57p at 2,034p, Anglo-American, up 53.2p at 1,932.4p, and Ashtead, up 74p at 2,764p.

The biggest fallers of the day were IAG, down 10.3p at 184.25p, Whitbread, down 59p at 2,385p, Intercontinental Hotel Group, down 100p at 4,048p, and British Land, down 7.1p at 359.2p.