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FTSE buoys as commodities rally

The FTSE rose 0.7 per cent this morning after strong performance from mining and banking stocks.

The FTSE 100 benchmark index opened up at 3,875.09 from Thursday’s close of 3874.99 after commodity stocks advanced and Royal Bank of Scotland’s recapitalisation scheme received the backing of shareholders.

BHP Billiton Ltd, the world’s biggest mining company lifted 8.37 per cent to 815.50p by 10am and rival Rio Tinto added 6.58 per cent to 2,155p.
RBS was also up 4.35 per cent to 48p per share, while Barclays advanced 2.82 per cent to 131.30p.

There had been concerns of another slump for the London index after the Dow Jones Industrial Average closed more than 5 per cent lower yesterday hitting a five year low due to renewed fears over deflation and global recession.

Meanwhile, Libor continued to fall consistently this week in reply to the recent Bank rate drop. Latest overnight rates saw pound Libor stick at 3.0 per cent,
while three-month Libor fell to 4.06 per cent.

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