LONDON MARKETS: FTSE 100 Jumps As Ukraine Tensions Ease

By Sara Sjolin, MarketWatch

LONDON (MarketWatch) -- U.K. stocks posted solid gains at the open on Monday as geopolitical concerns eased over the weekend after Ukrainian and Russian officials met in Berlin to discuss a solution to the crisis.

The FTSE 100 index climbed 0.8% to 6,739.06, after jumping 1.9% last week.

The benchmark nudged a 0.1% gain on Friday, although reports of a confrontation between Russia and Ukraine shaved off most of earlier gains in the afternoon. Over the weekend, Ukrainian Foreign Minister Pavlo Klimkin and his Russian counterpart Sergei Lavrov met to discuss ways to ease the tensions. German Foreign Minister Frank-Walter Steinmeier said after the meeting that some progress had been made, according to Bloomberg.

Mining firms posted some of the biggest gains on Monday, with shares of Anglo American PLC up 2.1% and BHP Billiton PLC (BHP) (BHP) rising 1.4%.

Housebuilders, however, declined after Bank of England Governor Mark Carney hinted over the weekend that the central bank could raise interest rates before wages improve.

Shares of Barratt Developments PLC fell 0.3%, and Taylor Wimpey PLC gave up 0.6%.

The pound (GBPUSD) climbed after the comments from Carney, trading at $1.6736, up 0.3%, according to FactSet.

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