Heavyweight mining stocks made gains this morning amid growing optimism about the recovery in the global economy.
Metal prices were lifted higher after China signalled on Friday that more stimulus may be provided next year to support economic growth.
Shares in Antofagasta rose 19½p, or 1.4 per cent, to £13.90½; Fresnillo added 25¼p, or 3 per cent, to 886p; and Hochschild Mining put on 3½p, or 2.4 per cent, to 139p.
BHP advanced 35½p, or 1.7 per cent, to £21.63½ as the bidding war for Noront, the Canada-based mining company, heated up.
The wider market fell flat as investors marked their time before the Bank of England’s key interest rate decision later this week. By mid-morning the FTSE 100 edged down 7.4 points, or 0.1 per cent, to 7,284.68.
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Among the other risers was Smurfit Kappa, the FTSE 100 packaging company, which gained 66p, or 1.7 per cent, to £40.30 on the back of JP Morgan lifting its target price on the stock from £48.04 to £49.75. WPP ticked up 11½p, or 1 per cent, to £11.06½ after analysts at HSBC tipped their clients to buy the stock.
Shares in a number of travel related stocks came under pressure amid tougher restrictions in response to the fast-spreading Omicron coronavirus variant. IAG, the British Airways owner, fell back 4½p, or 3.3 per cent, to 133p; Rolls Royce, the engine maker, slipped 2½p, or 2 per cent, to 120½p; and Whitbread declined 57p, or 2 per cent, to £28.41. Trainline lost 12p, or 4.4 per cent, to 261½p.
The more UK-focused FTSE 250 fared worse as it declined 84.6 points, or 0.4 per cent, to 22,843.16.
Capita was the heaviest drag after the outsourcing giant warned that Covid-19 had continued to impact a number of its businesses and that top line growth had slowed. Its shares to tumbled 8p, or 17.7 per cent, to 37¼p.
Purplebricks, the struggling online estate agency, dropped 6¼p, or 19.3 per cent, to 25½p having announced that it would be delaying the publication of its results because it could be forced to pay up to £9 million in compensation to tenants of its landlords.