China's stimulus plan has had a positive impact on share prices.
London's FTSE 100 was boosted today by the Chinese government's plan to pump four trillion yuan (£375 billion) into the country's economy. News of the cash injection pushed the index up by over 130 points in early trading.
Mining stocks saw the biggest gains, with Xstrata rising 13.58 percent and Eurasian Natural Resources increasing by 12.87 per cent. Hopes of an increase in demand for metals and other raw materials among Chinese construction companies also lifted shares involved in these sectors.
China unveiled its stimulus package on Sunday. According to the Xinhua news agency, the government intends to "loosen credit conditions, cut taxes and embark on a massive infrastructure spending program in a wide-ranging effort to offset adverse global economic conditions by boosting domestic demand".
The gains in London follow rallies on Asian stock markets. Tokyo's Nikkei 225 index rose by 5.8 percent, while the Hang Seng increased 3.52 percent. In Europe, the Dax and the Cac 40 were also up and New York's Dow Jones began the day with a rally.
At 14:50 BST, the FTSE 100 was still up on the day, standing 1.92 percent higher. On Friday, the index gained 2.17 percent, following a 5.7 percent slump on Thursday.
