Miners buoy FTSE as US commits to boosting growth

British and European markets held on to their gains on Thursday to close in positive territory as the FTSE 100 was led higher by mining stocks.

The benchmark UK index of blue-chip shares breached the 5,800 mark, a six-month high, in intraday trade and closed up 1.26%, or 72 points, to 5,795 and the Mid-250 index took on 1.49%, or 161 points, to hit 10,909.

Commodities led gains as the outlook for global economic growth was brightened by news that the US Federal Reserve will hold interest rates down until at least 2014 in a bid to increase market liquidity.  

Copper and zinc miner Vedanta Resources (VED.L) topped the index taking on 100p, or 8.7%, to £12.52, pushed ahead by hopes for better growth. Vedanta was also boosted by its subsidiary Cain India announcing that net profits increased 12.5% in the last three months of 2011.

See the FTSE’s performance and the index’s top winners and losers.

Markets make cautious gains as Greece saga continues

The day's gains were held back by news that there was no resolution to the ongoing Greek debt talks.  

Shavaz Dhalla, a trader at Spreadex, said: ‘Global markets continued their rally this afternoon supported by data from the US showing manufacturers received a higher volume of new goods orders this month, brushing aside a small increase in weekly unemployment claims as well as data showing a reduction in monthly new home sales.' 

However, investor optimism could be expelled abruptly if a resolution fails to materialise following today’s talks between Greece and its private creditors regarding a debt write-down.

Other stock markets in Europe also rose: Germany’s DAX index took on 1.84% to 6,454, France's CAC 40 index added 1.53% to 3,363, and the FTSEurofirst 300 index of top European shares increased 1.12% to 1,051.

US markets paused as new figures showed house sales fell for the first time in four months. The Dow Jones Industrial Average added 0.14% to 12,775, the Standard & Poor's 500 index drifted down 0.14% to 1,324, and the Nasdaq Composite index lost 0.24% to 2,812.

Gold rallied on the Fed’s announcement to hit $1,712. Sterling added 0.31% against the dollar to hit £1.57 and the euro rose 0.36% to €1.31.  

Miners bolster FTSE

Commodity stocks led the FTSE on hopes for stronger global growth. Polymetal International (POLYP.L) added 83p, or 7.8%, to £11.52 and Kazakhmys (KAZ.L) rose 81p, or 7.3%, to £11.94, on the news that it met all of its copper production forecasts.

Tragedy-stricken cruise liner Carnival (CCL.L) fell 42p, or 2.2%, to £19.01 as new evidence about events on the night of the crash of the Costa Concordia emerged that could implicate company management in the decisions that led to the cruise liner sinking.