London shares closed higher on Monday, boosted by demand for mining stocks amid signs of recovery in the global economy, dealers said.
The benchmark FTSE index gained 13.13 points or 0.21 percent to close at 6,277.06.
“The markets have already been gifted with news that the OECD has indicated that growth in the Eurozone region is unlikely to deteriorate further,” said Shavaz Dhalla, a trader at Spreadex.
“In addition, optimistic comments from Germany policy makers hinting that the future is bright for the German economy is also sitting well with investors.”
However, optimism could fade if any adverse news from Monday’s night’s eurozone finance ministers’ meeting implies that the Eurozone debt crisis is not firmly under control, Dhalla said.
Kazakhstan-based mining group ENRC led the London gainers with a rise of 4.79 percent to 395.80 pence, while Russia-focussed steel and mining business Evraz climbed 2.60 percent to 296 pence.
Troubled bank Barclays added 0.97 percent to 301.50 pence amid reports that Tuesday’s results statement will include an announcement that it aims to axe annual costs by £2.0 billion and cut 2,000 investment bank jobs.
The Financial Times newspaper, which cited bank insiders and analysts, said that the cuts — equivalent to ten percent of the group’s cost base — would focus on a retrenchment of investment bank operations particularly in Asia.
The scandal-hit lender will also announce a partial wind-down of retail and commercial banking in parts of Europe, such as Italy.
Barclays chief executive Antony Jenkins will present Tuesday’s results and strategic overhaul as he bids to transform its reputation following last year’s Libor rate-rigging crisis. It was also hit hard by the mis-selling of credit insurance and interest rate hedging products.
Supermarkets bounced back as it became clear that the horsemeat scandal is much wider than their own-branded products. Tesco, whose value burgers were among the first products to be found to contain horsemeat, gained 1.46 percent to 367.90 pence and William Morrison rose 2.40 percent to 256.10 pence.
Randgold sank 2.58 percent in the wake of big gains last week after a production update.
The mining sector will be in focus again later in the week, with global giants Rio Tinto and Anglo American both scheduled to release their results on Thursday and Friday respectively.
Other companies planning statements include aero-engine maker Rolls-Royce, issuing preliminary results for last year on Thursday.
On the currency markets, sterling eased to $1.5662 at 5:32 pm from $1.5695 before the weekend and weakened to 1.1679 from 1.1719 euros late on Friday.
London shares close higher, lifted by miners
