By Carla Mozee, MarketWatch
U.K. stocks jumped Monday, led by the mining sector after China
enacted a new measure aimed at a stimulating growth in the world's
second-largest economy.
The FTSE 100 rose 0.8% to 7,052.13, with all sectors
advancing.
The heavily weighted mining group climbed nearly 2%, after
China's central bank over the weekend cut the amount of reserves
commercial banks are required to hold. The move frees up about $200
billion for lending
(http://www.marketwatch.com/story/china-cuts-banks-reserve-ratio-2015-04-19-94854558).
China has been struggling with slowing growth, including in its key
property market.
"Before policymakers are assured of growth stabilization, there
will be more easing moves," with further relaxation on mortgage
rules a possibility, Société Générale economist Yao Wei said in a
note Monday.
Miners can be particularly sensitive to developments from China,
a major buyer of metals and other commodities. Shares of iron-ore
producer Anglo American popped up 2.7%. BHP Billiton PLC (BHP) rose
2.5%, and Rio Tinto PLC (RIO) tacked on 2.6%. Glencore PLC picked
up 1.5%. But precious metals miner Fresnillo PLC turned lower,
closing down 1.7% to becoming the largest decliner of the
session.
It was on Friday that Chinese regulators made changes in trading
rules for local markets, moves that triggered a nearly 1% tumble in
the FTSE 100
(http://www.marketwatch.com/story/ftse-100-moves-higher-but-weekly-loss-in-sight-2015-04-17)
and a global selloff in stocks.
Rio Tinto is slated to release a quarterly operational review
Monday night London time, and BHP's March operational update is due
Wednesday.
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