The FTSE 100 Index has surged ahead as higher oil prices and a rally led by miners put it on course for its fourth day of gains in a row.
Traders cheered Glencore’s plans to refinance its 8.45 billion US dollar (£5.9 billion) credit facility, which comes on the back of Tuesday’s strategy announcement by Anglo American to shore
up its finances.
The FTSE 100 Index lifted 93.4 points to 5955.4, as the price of Brent crude rose 2% to just under 33 US dollars a barrel as protracted talks continue between oil-producing nations about cutting output.
Germany’s DAX and the Cac 40 were both up around 2%.
Iran is reported not to be in favour of the output freeze, agreed by oil ministers from three Opec countries, as well as Russia, on Tuesday. However, their agreement will only hold as long as other producers follow suit.
The price of oil is 70% below its peak in the summer of 2014, but output levels have been maintained as producers bid to keep hold of market share.
The UK jobless total dipped to 1.69 million in the final quarter of last year, a rate of 5.1%, the lowest since the end of 2005.
However, average earnings increased by 1.9% in the year to December, 0.2% down on the previous month.
The pound was slightly down against the US dollar at just under 1.43, and little changed against the euro at 1.28.
Among stocks in London, miners Glencore and Anglo American were the biggest risers, up 9.3p to 112.3p and 29.9p to 427p respectively.
Engine-maker Rolls-Royce lifted 29p to 660.5p after a Financial Times report said it was preparing to back US hedge fund ValueAct’s attempt to gain representation on its board of directors
following its acquisition of a 10% stake in the company.
The group has suffered five profit warnings over the last two years as its markets deteriorate.
New and used car sales website Auto Trader also saw its stock value climb 6.6p to 367.9p, as it upped its full-year earnings outlook after hailing better-than-expected sales.
The FTSE 250 firm, which attracts around 43 million visits to its websites a month, said that while the number of retailer forecourts advertising on its sites remained flat since its half-year, sales were boosted as retailers and private sellers placed more ads.
It said thanks to buoyant trading over the past four months, it expects full-year underlying earnings to edge ahead of City expectations, to between £169 million and £171 million
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