A bullish start to the day saw UK markets led higher by mining stocks, with the FTSE 100 index rising 0.3% in early trade. The rally comes as metal prices continue their upward trajectory, prompting JP Morgan to upgrade its rating on global mining giant Rio Tinto from “neutral” to “overweight”.
Rio Tinto’s (LSE: RIO) London-listed shares jumped 2.5% on the upgrade, a vote of confidence in the miner’s prospects. Analyst Patrick Jones also raised his price target on Rio’s stock to 7,000p from 6,310p previously, citing higher commodity prices.
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The mining sector continues to be a barometer for optimism around the economic outlook, with today’s gains indicating investors see scope for further upside. Other major UK benchmarks remained rangebound, however, with the FTSE 250 index trading flat on the session so far.
