FTSE rallies 1% as miners surge on China economy hopes

The FTSE 100 jumped 1.0% on Friday to close out the week 0.6% higher, as mining stocks Anglo American and Antofagasta powered higher after receiving analyst upgrades. The FTSE 250 added 1.0% but still slipped 0.3% on the week.

A new orders rebound pushed China’s factory sector back into growth territory in November, boosting economically sensitive sectors. The Caixin manufacturing purchasing managers’ index rose to 50.7 last month from 49.5 in October.

Anglo American and Antofagasta shares rallied 6.2% each after UBS raised both to ‘buy’ from ‘neutral’. The mining giants were further bolstered by the upbeat Chinese data.

Meanwhile, Ceres Power Holdings slumped 7.0% after the clean energy firm warned 2023 revenue will likely decline to £20-21 million from £22 million this year. FTSE Russell said Wednesday that Ceres will exit the FTSE 250 index in its next review.

On AIM, mineral sands producer Capital Metals gained 17% as Sri Lanka formally reinstalled key mining licences that were previously suspended. The licences have now been granted for 10 years from August 2022.