Miners lift FTSE 100 on China reopening optimism

UK's export-oriented FTSE 100 rose on Friday as miners jumped on hopes that China would relax its COVID-19 restrictions, setting up the index for gains for the week that saw major central bank meetings dictating the market's moves. The blue-chip FTSE 100 climbed 0.9%, while the mid-cap FTSE 250 added 0.5% 9:39 GMT.

UK's export-oriented FTSE 100 rose on Friday as miners jumped on hopes that China would relax its COVID-19 restrictions, setting up the index for gains for the week that saw major central bank meetings dictating the market's moves.

The blue-chip FTSE 100 climbed 0.9%, while the mid-cap FTSE 250 added 0.5% 9:39 GMT. Both the indexes were on track for weekly gains in more than a month. Miners jumped 3.5% as investors cheered news that Beijing will relax its strict COVID measures in March, while copper production concerns from Peru, the second-largest copper producer further boosted prices of the red metal.

Lifting sentiment further, the Bank of England hinted on Thursday that peak interest rates would be less than what markets had originally priced in. Rate sensitive banks rose 1.6%.

"It's now a feeling that the Bank of England would wait and see how rate hikes have affected economic growth and slowed down inflation to avoid over-tightening," said Daniela Hathorn, market analyst at Capital.com. Six weeks ago markets were in a rout on fears of the British economy declining into political and economic instability. As the week of central bank tightening ends, investors are looking toward the new budget announcement on Nov. 17.

"I don't think markets are expecting (the budget) to be a disastrous situation like it was back then," Hathorn added. Synthomer Plc rose 6.3% after Malaysian plantation giant Kuala Lumpur Kepong said it is looking to boost its 26.3% stake in the British chemicals company.

National World Plc jumped 2.4% after it said it was exploring a cash offer for Daily Mirror-owner Reach Plc. Reach rose 4.3%.