FTSE 100 index rebounds as oil prices climb and miners rally

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The FTSE 100 index closed up on Tuesday as the price of oil rebounded and mining stocks began to rally.

The UK's blue-chip index rose 0.59 per cent to 5,911 points, led by Anglo American and Glencore as the price of oil staggered back over $30 a barrel.

"A short-squeeze in crude oil has dragged markets out of the doldrums. Oil prices continue to be the dominating driver of stock market direction. The price of oil reversed an early decline during Asian trading hours before gaining as much as three per cent as US markets came online," said Jasper Lawler, markets analyst at CMC Markets.

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Anglo American led the rebound, rocketing 11.80 per cent to 253.35p per share. Glencore and Fresnillo rose 7.73 per cent to 87.1p per share and 5.55 per cent to 694.5p per share respectively.

Rio Tinto jumped 4.94 per cent to 1,688.5p per share while Antofagasta rose 4.07 per cent to 378p per share and BHP Billiton's share price closed at 665.5p, a 4.02 per cent increase.

Randgold Resources was another riser on the FTSE, up 4.87 per cent at 4,820, as gold is considered a safe haven for investors.

"The FTSE 100 leaped back, led higher by basic resource and oil and gas sectors as oil and metal prices pulled away from multi-year lows," Lawler added. "A slide in BT and EasyJet shares meant consumer services and telecoms were at the bottom of the UK benchmark."

EasyJet's share price fell 3.19 per cent to 1,579p after the company reported revenues fell 0.1 per cent in the three months to 31 December. 

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Today Bank of England governor Mark Carney faced questioning from the Treasury Select Committee about his position on the UK economy and the timing of when interest rates might rise, said Michael Hewson, chief markets analyst at CMC Markets. 

"As recently as August last year he was hinting that interest rates could be set to rise in the coming months only to revise that position at the beginning of this year."