London close: Blue chips, mid caps end higher as miners rally with copper prices

Prices for the 'red metal' pushed higher at the start of the week on expectations a strike at Chile's Escondida mine, the world's largest copper bore, might last longer than expected.

This as exports were halted from the second-largest mine on the planet, Grasberg in Indonesia.

Together these had a knock-on benefit for other industrial metals, while iron ore prices were on the front foot after an uptick in construction in China.

These factors helped propel the FTSE 350 indices for mining and separately industrial metals up by 2.15% and 3.57%, respectively.

Blue-chip stocks zipping north as a result included Anglo American, Rio Tinto, Glencore and Antofagasta. Other sectors prominently higher included financials, house builders and utilities.

Against that backdrop, the FTSE 100 ended just below a new record closing high, while the FTSE 250 once again ended the session in previously uncharted waters.

"A 20-month high for copper prices is emblematic of the move back to base metals amid expectations of rising economic growth, with gains for the FTSE 100 driven once again by the miners," said Chris Beauchamp, chief market analyst at IG.

"It is, admittedly, a slow news day, but the rash of new record highs in the US seems to have brought out the momentum players, who spent most of December and January on the sidelines."

Some ballast to the accelerating miners was provided by the European Commission revising its estimate for UK's economic growth in 2017 to 1.5%, from 1% previously and versus 2% in 2016.

The market was now focused on Tuesday's UK consumer-price index (CPI) reading, which was expected to near Bank of England's (BoE) targeted 2%.

"The prospect of such an upward CPI swing, and the potential ramifications this has for a BoE rate hike, has helped the pound hold off the dollar while nabbing nearly half a percent in growth from the euro," said Connor Campbell, financial analyst at SpreadEx.

"It has also prevented the FTSE from fully joining in with the day's rally. ... It (the FTSE's gain) doesn't compare to the gains seen in the Eurozone."

Back in London, generally positive investor sentiment was lent support by news from US President Donald Trump's meeting with Japanese leader Shinzo Abe over the weekend.

Trump reaffirmed the US' 'One China' policy in a telephone call with that country's leader.

Traders had fretted on whether the US would renege on its long-standing policy commitment to support to China's reunification, a key element of its Asia Pacific regional security strategy.

On a more sombre note, North Korea's latest and allegedly successful ballistic missile test over the weekend sparked closed consultations at the UN's Security Council on Monday.

The urgent diplomatic talks were called for by US, Japan and South Korea.

In the news, Glencore's share rose as it said it had purchased Fleurette Properties' remaining 31% stake in Mutanda Mining, and a roughly 10.25% stake in Katanga Mining.

Shares in Royal Bank of Scotland improved on the back of weekend reports it planned to axe about 15,000 jobs, which the lender denied ahead of its annual results next week.

Old Mutual has apparently received new approaches for its $900m controlling stake in its US asset management arm.

Finally, Capita and the Co-operative Bank have resolved contractual differences over claims the outsourcing firm withheld payments from the bank due to delays as it helped administer mortgages for Capita's clients.

Market Movers

FTSE 100 (UKX) 7,278.92 0.28%
FTSE 250 (MCX) 18,768.89 0.29%
techMARK (TASX) 3,348.65 0.09%

FTSE 100 - Risers

Anglo American (AAL) 1,409.50p 4.21%
Rio Tinto (RIO) 3,679.50p 3.00%
Glencore (GLEN) 328.95p 2.56%
Royal Bank of Scotland Group (RBS) 234.60p 2.49%
Babcock International Group (BAB) 901.00p 2.27%
Hargreaves Lansdown (HL.) 1,394.00p 2.05%
Antofagasta (ANTO) 883.50p 2.02%
Hikma Pharmaceuticals (HIK) 1,975.00p 1.96%
Barclays (BARC) 232.35p 1.62%
Associated British Foods (ABF) 2,540.00p 1.60%

FTSE 100 - Fallers

Capita (CPI) 513.50p -2.38%
Fresnillo (FRES) 1,524.00p -1.99%
Direct Line Insurance Group (DLG) 360.70p -1.98%
Marks & Spencer Group (MKS) 335.10p -1.96%
Paddy Power Betfair (PPB) 8,560.00p -1.61%
Royal Mail (RMG) 408.30p -1.28%
Admiral Group (ADM) 1,880.00p -0.95%
Next (NXT) 3,931.00p -0.88%
Mediclinic International (MDC) 828.50p -0.84%
Standard Life (SL.) 367.40p -0.81%

FTSE 250 - Risers

Ferrexpo (FXPO) 175.00p 6.71%
Spectris (SXS) 2,424.00p 3.63%
St. Modwen Properties (SMP) 339.40p 3.38%
Vectura Group (VEC) 145.80p 3.26%
Aberforth Smaller Companies Trust (ASL) 1,203.00p 3.17%
Kaz Minerals (KAZ) 586.50p 2.80%
Wizz Air Holdings (WIZZ) 1,609.00p 2.42%
Ocado Group (OCDO) 258.20p 2.34%
Evraz (EVR) 253.90p 2.30%
Keller Group (KLR) 886.50p 2.07%

FTSE 250 - Fallers

NMC Health (NMC) 1,737.00p -3.02%
Greene King (GNK) 657.50p -2.81%
Debenhams (DEB) 54.10p -2.61%
Pets at Home Group (PETS) 185.00p -2.37%
Centamin (DI) (CEY) 174.20p -1.69%
Fidessa Group (FDSA) 2,363.00p -1.54%
OneSavings Bank (OSB) 351.20p -1.51%
AO World (AO.) 159.30p -1.48%
Clarkson (CKN) 2,535.00p -1.36%
Atkins (WS) (ATK) 1,469.00p -1.34%