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Miners lead market surge

London rises again to end year at record high

London Stock ExchangeThe FTSE 100 index ended the year at a record high – echoing its performance in 1999 when it peaked on the final trading day of the year.

A rally in mining stocks saw the index hit a new closing record for the third successive day, closing 0.3% higher  at 7,142.83. This also passed the intra-day high of 7,129.83 set on 11 October this year.

The index is 14.4% up on the year, outperforming major European indexes by a significant margin.

Analysts said a slump in sterling boosted the index’s export-oriented companies, which generate a large portion of their revenues in dollars. There has also been evidence of resilience in the economy in spite of warnings following the Brexit decision.

Stronger metals prices and expectations of a boost in infrastructure spending by US President-elect Donald Trump is also giving equities a lift.

Anglo American is 287% higher in 2016, while Glencore is up 207% and BHP Billiton 72%.

 

 



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