FTSE 100 edges towards 6000 mark

The FTSE 100 Index has taken another step towards the 6000 barrier after China refrained from raising interest rates to curb inflation.

Gains in the heavily-weighted mining sector drove London’s latest rally, which saw the blue-chip index climb 54.1 points to a one-month high of 5867.7.

There had been fears over higher interest rates in China after its inflation rate jumped to a 28-month high of 5.1%. However, investors were relieved that an an annual economic meeting ended on Sunday with just a pledge to control inflation while shifting the economy toward more stable, balanced growth.

Wall Street’s Dow Jones Industrial Average also opened higher, boosted by gains in Asian and European markets.

In the UK, the top flight risers board was dominated by resources stocks as Kazakhmys climbed 64p to 1593p, silver miner Fresnillo cheered 61p to 1594p and Antofagasta rose 52p to 1549p.

Household goods giant Reckitt Benckiser was also on the rise, up 2% or 57p to 3566p, as news of its deal to buy India’s Paras Pharmaceuticals was taken well.

Analysts praised the acquisition for expanding Reckitt’s market share in such a key emerging market.

The FTSE 250 Index was dominated by merger and acquisition activity in the oil and gas services sector.

Wellstream Holdings backed an £800 million takeover offer from America’s General Electric.

GE’s latest proposal, which followed two rejected offers, caused shares in Newcastle-based Wellstream to rise 40p to 787p, up 5%.