The London market climbed despite the continuing fallout from the Paris terror attacks.
The FTSE 100 Index was 29.8 points up to 6148.1, buoyed by a robust mining performance.
UK and European markets had been knocked in the first hour of trading but recovered, with Germany’s DAX up 0.3% while France’s Cac 40 was flat.
Traders had been worried about the combined effects of the Paris attacks, China’s economic slowdown, lower oil prices and the prospect of a US rate hike next month.
But CMC Markets analyst Jasper Lawler added: “It seems likely there will be more air strikes and more attacks like those seen in Paris, which has the potential to be an ongoing source of unease for markets.”
The pound was slightly down against the euro at just under 1.42, after official data said eurozone inflation lifted higher than forecast to 0.1% in October from zero the month before.
But this is way below the European Central Bank’s (ECB) target of just below 2% for the 19-nation bloc, and the central bank is still widely expected to announce further stimulus measures at
its December policy meeting. Sterling was also slightly down against the US dollar, at just under 1.52.
Increased geopolitical risk lifted safe havens such as gold which has rebounded from near five-year lows.
This saw Randgold Resources climb 51p to 4002p and silver miner Fresnillo rise 7.5p to 680.5p, with other commodity producers also on the move such as Anglo American up 3.6p at 459.8p.
Oil stocks were also on the rise on the prospect of rising tension in the Middle East impacting supply.
Royal Dutch Shell climbed 36p to 1618.5p, while BP lifted 6.3p to 370.7p.
Travel stocks were the heaviest fallers in response to the Paris attacks.
Holiday firm TUI was the biggest faller in the top flight, down 47p to 1087p, British Airways owner International Airlines Group fell 15p to 577.5p and cruise business Carnival was 69p lower
at 3402p.
Housebuilder Taylor Wimpey has hailed an “excellent summer selling season“ and forecast a sharp improvement on its full-year profit margins.
Recommended for you
