FTSE bounds back with gains of 3.5%

The FTSE 100 bounced back from 10 days of losses.

 

By lunchtime, the index was up 207.87 points or 3.52% to 6,106.74.

The rise was boosted by news that China had cut its main interest rate by 0.25 percentage points to 4.6%.

The list of top gainers was dominated by mining stocks. The sector, which had been hard hit on Monday by fears that China's appetite for commodities was slowing, staged a strong recovery.

Glencore was the best performer in the sector, rising 9%.

It was followed by BHP Billiton, which gained 7.7%, despite publishing results that showed a 52% slump in annual profits.

Antofagasta also did well, adding 7.5%.

However, fellow miner Randgold Resources was the only falling share on the index, with a decline of 0.3%.

On the currency markets, the pound was up 0.08% against the dollar at $1.5789 and gained 1.27% against the euro to €1.3761.