By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Oil producers and mining firms posted
solid gains in London on Thursday on an increase in commodity
prices, while Associated British Foods PLC rallied after a
well-received trading update.
The FTSE 100 index rose 1% to 6,572.05, on track for its highest
closing level since June 4.
Among biggest gainers in the index, shares of Associated British
Foods PLC jumped 6.9% after the food ingredients maker and owner of
Primark clothing stores said revenue for the 40 weeks to June 22
was up 9%. Additionally, the company said its on track for
achieving good progress in full-year earnings.
Mining firms also showed positive moves as most metals prices
rallied. Gold, in particular, had a good day, after U.S. Federal
Reserve Chairman Ben Bernanke said interest rates will remain low
to boost economic growth. The comments sent the greenback lower,
which helped dollar-denominated commodities such as gold.
Among London's precious miners, Randgold Resources Ltd. jumped
6.7% and Polymetal International PLC surged 10%.
Among other miners, Anglo American PLC gained 5.8%, Rio Tinto
PLC (RIO) added 5.2% and BHP Billiton PLC (BHP) climbed 4.4%.
Oil firms further showed positive moves, with oil futures
topping $107 a barrel for the first time since March 2012. BG Group
PLC and Royal Dutch Shell PLC (RDSB) both added 1.3%.
Melrose Industries PLC rose 1.6% after UBS lifted the investment
company to buy from neutral.
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