LONDON MARKETS: Miners Lead Gains On FTSE 100 As China Aims To Spur Growth

By Carla Mozee, MarketWatch

U.K. stocks jumped Monday, led by the mining sector after China enacted a new measure aimed at a stimulating growth in the world's second-largest economy.

The FTSE 100 rose 0.8% to 7,052.13, with all sectors advancing.

The heavily weighted mining group climbed nearly 2%, after China's central bank over the weekend cut the amount of reserves commercial banks are required to hold. The move frees up about $200 billion for lending (http://www.marketwatch.com/story/china-cuts-banks-reserve-ratio-2015-04-19-94854558). China has been struggling with slowing growth, including in its key property market.

"Before policymakers are assured of growth stabilization, there will be more easing moves," with further relaxation on mortgage rules a possibility, Société Générale economist Yao Wei said in a note Monday.

Miners can be particularly sensitive to developments from China, a major buyer of metals and other commodities. Shares of iron-ore producer Anglo American popped up 2.7%. BHP Billiton PLC (BHP) rose 2.5%, and Rio Tinto PLC (RIO) tacked on 2.6%. Glencore PLC picked up 1.5%. But precious metals miner Fresnillo PLC turned lower, closing down 1.7% to becoming the largest decliner of the session.

It was on Friday that Chinese regulators made changes in trading rules for local markets, moves that triggered a nearly 1% tumble in the FTSE 100 (http://www.marketwatch.com/story/ftse-100-moves-higher-but-weekly-loss-in-sight-2015-04-17) and a global selloff in stocks.

Rio Tinto is slated to release a quarterly operational review Monday night London time, and BHP's March operational update is due Wednesday.

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