London close: Miners lead equities higher

London stocks finished higher on Tuesday, led by mining shares as metal prices rose.

The FTSE 100 closed up 0.45% to 7,017.654 points.

Anglo American was one of the biggest risers on the FTSE 100 after the group reiterated its full year guidance and reported an increase in third quarter production of diamond, nickel and iron ore.

Glencore racked up strong gains, hitting a 15-month high after it emerged the company had agreed a much-improved coal deal with an important Japanese buyer.

Sector peers Rio Tinto and Antofagasta rallied on the back of a rise in copper, silver and gold prices.

Going the other way, GKN shares declined after it posted slower growth and lower trading margins for the nine months to the end of September.

Whitbread slumped as the company reported an increase in first half profits at its Premier Inn hotels arm but a dip in profits from Costa coffee shops.

Intu Properties was on the back foot as it cautioned that new rental incomes might grow more slowly in 2017.

On the macroeconomic front, Bank of England Governor Mark Carney said the drop in the value of the pound had been “fairly substantial” as he addressed the House of Lords on Tuesday.

Carney said the BoE would take the currency moves into account when setting policy but reiterated that the central bank did not target a particular level of sterling.

He blamed uncertainty surrounding the Brexit vote for the weaker pound.

"Sterling starts to really move as it becomes clearer the timing of the Article 50 triggering, and the market's perception - and I really underscore it's the market's perception - of what the potential relationship will be between the United Kingdom and Europe," Carney said.

Ahead of Carney’s speech, Chancellor Philp Hammond said that he wanted to prioritise the country’s financial service sector in the government’s Brexit negotiations. He also said he could not imagine rejecting the BoE’s bond buying programme, which sent the pound lower against the dollar in afternoon trade.

The pound dropped 0.66% to $1.2157 at 1639 BST.

In other UK news, the government approved a third runway for Heathrow. The decision ends a long-running dispute over whether to expand at Heathrow or Gatwick.

Elsewhere, a report from the Ifo Institute showed German business confidence rose to the highest level in more than two years in October. Ifo’s business climate index climbed to 110.5 from 109.5 in September, beating expectations of 109.6.

In the US, the Conference Board’s consumer confidence index dropped to 98.6 in October from 103.5 in September, worse than forecasts of 101. The reading for September was revised down from a previous 104.1.

Meanwhile, oil prices wavered on doubts of a deal to curb production being reached at next month’s OPEC meeting. Iraq signalled over the weekend that it would not take part in an agreement to limit output while Russia is now also reportedly in opposition to the proposal.

Brent crude fell 1.2% to $50.85 per barrel and West Texas Intermediate declined 0.97% to $50.03 per barrel at 1651 BST.

Market Movers

FTSE 100 (UKX) 7,017.64 0.45%
FTSE 250 (MCX) 17,801.85 -0.33%
techMARK (TASX) 3,429.43 -0.12%

FTSE 100 - Risers

Anglo American (AAL) 1,114.00p 4.55%
Rio Tinto (RIO) 2,796.00p 4.50%
Glencore (GLEN) 246.15p 3.60%
Randgold Resources Ltd. (RRS) 7,200.00p 3.08%
BHP Billiton (BLT) 1,261.00p 3.02%
Antofagasta (ANTO) 540.50p 2.95%
BT Group (BT.A) 387.70p 2.65%
Royal Bank of Scotland Group (RBS) 192.30p 2.29%
Fresnillo (FRES) 1,643.00p 1.86%
BP (BP.) 495.15p 1.68%

FTSE 100 - Fallers

Whitbread (WTB) 3,699.00p -3.75%
Travis Perkins (TPK) 1,346.00p -3.30%
GKN (GKN) 313.90p -2.88%
Pearson (PSON) 746.50p -1.97%
Next (NXT) 4,720.00p -1.81%
Intu Properties (INTU) 286.20p -1.72%
TUI AG Reg Shs (DI) (TUI) 1,029.00p -1.53%
Capita (CPI) 606.50p -1.46%
Associated British Foods (ABF) 2,440.00p -1.41%
Barratt Developments (BDEV) 469.00p -1.39%

FTSE 250 - Risers

Kaz Minerals (KAZ) 280.70p 5.57%
Cobham (COB) 145.90p 4.44%
Phoenix Group Holdings (DI) (PHNX) 755.50p 3.90%
Vedanta Resources (VED) 705.00p 3.45%
National Express Group (NEX) 367.00p 3.23%
Evraz (EVR) 213.30p 2.99%
Acacia Mining (ACA) 540.50p 2.95%
OneSavings Bank (OSB) 292.00p 2.35%
Petra Diamonds Ltd.(DI) (PDL) 150.50p 1.90%
Inmarsat (ISAT) 695.00p 1.83%

FTSE 250 - Fallers

Countrywide (CWD) 185.30p -8.27%
Laird (LRD) 157.50p -5.97%
Howden Joinery Group (HWDN) 381.00p -4.39%
AO World (AO.) 166.50p -4.37%
Mitchells & Butlers (MAB) 271.70p -3.86%
Dairy Crest Group (DCG) 605.00p -3.74%
Aldermore Group (ALD) 169.50p -3.58%
GVC Holdings (GVC) 679.50p -3.41%
Shawbrook Group (SHAW) 235.70p -3.12%
Savills (SVS) 701.00p -2.77%