Commodity stocks lift FTSE 100 on upbeat China factory data

They were also buoyed by a faster-than-expected growth in the Japanese economy and better-than-expected Chinese industrial output data. The mid-cap FTSE 250 index added 0.7% as Brexit talks resumed in Brussels, with Britain saying its red lines remained unchanged but that it wanted to reach a trade deal with the European Union.

London's FTSE 100 rose on Monday as commodity stocks jumped due to upbeat factory data from China and optimism around a COVID-19 vaccine, while investors awaited progress on a post-Brexit trade deal with the European Union.

The blue-chip FTSE 100 index rose 0.7%. British Airways owner-IAG led the gains with a 5.9% jump after HSBC raised its target price on the stock. Energy and mining stocks tracked crude and metal prices higher. They were also buoyed by a faster-than-expected growth in the Japanese economy and better-than-expected Chinese industrial output data.

The mid-cap FTSE 250 index added 0.7% as Brexit talks resumed in Brussels, with Britain saying its red lines remained unchanged but that it wanted to reach a trade deal with the European Union. "It is a crunch week for talks between the EU and the UK. While several self-imposed deadlines have come and gone, the end of the transition period is just a month-and-a-half away, suggesting something will have to give soon," Russ Mould, investment director at AJ Bell said.

The FTSE 100 has already gained more than 13% this month, outperforming its U.S. and European peers, helped by a slew of local stimulus measures and hopes of a sooner-than-expected economic recovery. The banks' sub-index gained 2.6%, following news that PNC Financial Services Group Inc would buy the U.S. business of Spanish lender BBVA for $11.6 billion in cash.

Britain's health minister said Prime Minister Boris Johnson was perfectly well after coming into contact with someone who tested positive for COVID-19. Vodafone Group Plc added 3.5% after saying it was increasingly confident about its full-year performance, while Whitbread Plc rose 3.6% on Goldman Sachs' double upgrade to "buy".

Tech firm Smiths Group rose 2.5% after highlighting a 30-million-pound cost-saving target for FY21.