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Britain's FTSE boosted by rally in HSBC, mining stocks
November 7, 2016 / 10:53 AM / a year ago

Britain's FTSE boosted by rally in HSBC, mining stocks

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* FTSE 100 up 1.4 pct

* HSBC rises after results

* Miners also rally, track metals higher

By Kit Rees

LONDON, Nov 7 (Reuters) - UK shares rose on Monday as mining stocks rallied after the FBI cleared Hillary Clinton in an email review, giving underlying commodities a boost, while banks were led higher by a jump in HSBC shares after it reported results.

The blue chip FTSE 100 index was up 1.4 percent at 6,784.60 points by 1042 GMT, in line with a rally among continental European indexes.

HSBC was the standout performer on the index, jumping nearly 5 percent and on track for the lender’s biggest daily gain in 7 months after reporting a jump in its core capital ratio, boosting the outlook for near-term dividend payments.

“If you look at the underlying numbers, actually those showed that if you strip out the one-off items, revenues were up, costs were down and profits were up, and those are three things that markets like,” Laith Khalaf, senior analyst at Hargreaves Lansdown, said.

Last week saw the FTSE 100 mark its biggest weekly loss since January as markets were hit by jitters ahead of the U.S. presidential election. Investors’ nerves were soothed on Monday after the FBI’s announcement that no criminal charges were forthcoming in the probe of Hillary Clinton’s email practices, giving the Democrat a boost.

Mining stocks were among the biggest gainers on the index, with Glencore, BHP Billiton, Antofagasta , Rio Tinto and Anglo American all up between 3 to 4 percent as the prices of underlying commodities also rose on increased hopes of a Clinton presidency.

Shares in precious metals miners Fresnillo and Randgold Resources were down, however, as investors dumped perceived safe haven assets.

Also among the fallers, shares in UK grocer Tesco retreated 0.9 percent after Tesco Bank temporarily online transactions after around 20,000 customers had money removed from their accounts after an attack by fraudsters over the weekend. (Reporting by Kit Rees; Editing by Tom Heneghan)

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