By Carla Mozee, MarketWatch
U.K. stocks gained 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 0.7% to 7,042.71, with all sectors except
utilities advancing.
The heavily weighted mining group climbed 1%, 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, Societe Generale 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
1.4%, and Rio Tinto PLC (RIO) tacked on 1.7%. Glencore PLC picked
up 0.9% and precious metals miner Fresnillo PLC nudged up 0.1%.
It was on Friday that Chinese regulators made changes in trading
rules for local markets, moves that triggered a nearly 1% fall 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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