The UK stock market was pushed into the positive territory today, adding 0.2% to 5,776.91, recovering from a 1.6% loss of yesterday, with the help of mining firms that were adversely affecting the UK stocks in the past few days.
Mining firms surged today with China injecting a record amount of CNY365 billion (£35.7 billion) liquidity into the banking system. Resource firms made merry as the top gainers in the UK stock market today, helped by the news.
Glencore and Rio Tinto rose 1.7% and 1.5% respectively. Anglo American PLC added 2%, Eurasian Natural Resources Corp. rose 1.1% and BHP Billiton PLC inched 0.8% higher. BP PLC climbed 0.6%, tracking oil prices higher.
Drug maker Shire was the biggest riser, climbing 2.5% after broker Jefferies urged investors to buy the stock.
Aviva PLC slightly increased with 0.6% as it agreed to sell its controlling stake of 58.44% in Aviva NDB Holdings Lanka (Private) Ltd. to American International Assurance Company Ltd., a subsidiary of AIA Group Ltd., for £31 million ($50.2 billion) in cash.
Along with mining firms, most banks in Europe also surged, with the UK banks climbing higher. Lloyds Banking Group PLC rose 1.4%, HSBC Holdings PLC picked up 0.9% and Barclays PLC gained 0.9%.
Buckling under the positive trend in London, contract-food-service firm Compass Group PLC fell 1.8%, alerting that the economic conditions in southern Europe continued to worsen and it would restructure operations in the region. Water company Pennon turned out to be the biggest loser of the day, down 1.9%.
For the broader UK market, investors also awaited news on Spain where the government announced its 2013 budget and economic reforms.