Easing China economy slowdown fears sends miners to top of London’s FTSE 100

Easing fears over a slowdown in the Chinese economy boosted London’s premier FTSE 100 index today.

The FTSE 100 jumped 0.36 per cent to 7,536.06 points, while the mid-cap domestically-focused FTSE 250 index, which is more aligned with the health of the UK economy, fell 0.23 per cent to 20,336.41 points.

Figures published earlier this week revealed Beijing’s tough zero Covid policy has sent a chill through the country’s economy.

Signs of softening demand in the world’s second largest economy sent FTSE 100-listed industrials on a downward spiral. 

China is a huge consumer of commodities, meaning a slowdown in spending in the country is likely to tamp down on industrial firms’ bottom line.

However, a strong set of results from previously FTSE 100-listed and Australian miner BHP parked China jitters, sparking a rally among London commodity companies.

Miners Glencore, Rio Tinto and Anglo America lined the top of the premier index, each adding at least 3.5 per cent. 

“There had been some concern that weaker demand for industrial metals like iron ore and copper might have weighed on the results, and indeed iron ore profits were lower due to reduced demand from China, but management were optimistic that this would improve,” Michael Hewson, chief market analyst at CMC Markets UK, said.

Oil prices slumped around two per cent on mounting concerns over the health of the global economy. Investors are betting energy consumption will slide as economic activity cools.

The pound lost around 0.1 per cent against the dollar.