The London market extended its gains on Thursday as miners rose on the back of long-awaited positive Chinese economic news.
The FTSE 100 Index climbed 60.9 points to 6330 by lunchtime, up from a 46-point increase in early trading.
Data out of Beijing showed that Chinese banks are lending more as the economy slows, with aggregate financing up a fifth in September against August.
The news buoyed miners, with Anglo American (LON:AAL) rising 6.9p to 687.9p, Rio Tinto (LON:RIO) lifting 25.5p to 2553.5p, Glencore (LON:GLEN) up 2.35p at 122.35p and BHP Billiton (LON:BLT) advancing 7.5p to 1160p.
But Burberry dented sentiment with a first-half trading update showing sales rose just 2% in the face of lower demand from Chinese shoppers.
It predicted adjusted pre-tax profit broadly in line with the average of those analysts who recently updated forecasts.
It said it expected a return to mid-single digit percentage growth in comparable sales in the second half. Shares fell 138p or 9.7% to 1281p in early London trading.
AJ Bell investment director Russ Mould said: "China has been the engine for Burberry’s growth in recent years but the impact of an increasingly challenging environment for luxury customers is being felt and has forced it to take swift action."
Unilever lifted 116p to 2906p as it pleased investors with a forecast that annual sales should be at the top end of hopes, helped by strong summer demand for ice cream.
Obtala Resources (LON:OBT) ticked up 0.75p to 7.62p after it outlined plans to seek an independent stock market listing for its timber operations.
But Kibo Mining (LON:KIBO) slipped 0.12p to 5.25p on news that it had finished work on the first phase of its definitive mining study for the coal mine at its integrated power project in Tanzania.
Orosur Mining (LON:OMI TSX:OMI) has upped its cash holdings despite lower production and gold prices hitting revenues. Shares rose 6.5% to 6.12p.
Meanwhile, Xtract Resources (LON:XTR) is set to complete the acquisition of the Manica gold deposit in Mozambique, after shareholders in seller Auroch approved its disposal. Shares gained around 2.1% to 0.24p.
Acal (LON:ACL) reversed 11.25p to 257.75p as the component distributor racked up strong sales and earnings in its first half but noted the possible impact of a global economic slowdown.
News that this year's sales from the Narrabri coal mine in Australia should exceed Anglo Pacific Group's (LON:APF) run of mine production boosted shares in the mining royalty specialist by 1.75p to 73.25p.
LONDON OPEN
London shares rose in early trading although downbeat figures from luxury fashion retailer Burberry limited gains.
The FTSE 100 Index climbed 46.66 points to 6316 following overnight gains in Asian markets and ahead of a raft of US data, including the latest unemployment claims.
But Burberry dented sentiment with a first-half trading update showing sales rose just 2% in the face of lower demand from Chinese shoppers.
It predicted adjusted pre-tax profit broadly in line with the average of those analysts who recently updated forecasts.
It said it expected a return to mid-single digit percentage growth in comparable sales in the second half, ongoing cost efficiencies, a reduction in performance-related pay and a benefit of about £10m to reported profit if exchange rates remain at current levels. Shares fell 178p or 12.5% to 1241p in early London trading.
AJ Bell investment director Russ Mould said: "China’s slowdown has wreaked havoc among heavyweight miners and now the ramifications are being felt by the iconic and very British luxury brand Burberry.
"China has been the engine for the group’s growth in recent years but the impact of an increasingly challenging environment for luxury customers is being felt and has forced Burberry to take swift action to control costs and limit the impact of weak sales on its full-year figures."
Unilever lifted 88p to 2878p as it pleased investors with a forecast that annual sales should be at the top end of hopes, helped by strong summer demand for ice cream.
Obtala Resources (LON:OBT) ticked up 0.5p to 7.38p after it outlined plans to seek an independent stock market listing for its timber operations.
But Kibo Mining (LON:KIBO) slipped 0.12p to 5.25p on news that it had finished work on the first phase of its definitive mining study for the coal mine at its integrated power project in Tanzania.
Orosur Mining (LON:OMI TSX:OMI) has upped its cash holdings despite lower production and gold price hitting revenues. shares rose 7.8% to 6.2p.
Meanwhile, Xtract Resources (LON:XTR) is set to complete the acquisition of the Manica gold deposit in Mozambique, after shareholders in seller Auroch approved its disposal. Shares gained around 4.5% to 0.24p.
MARKET PREVIEW
London’s blue chips are set to rally after strong gains on Asian markets overnight.
Financial spread bet firms see the FTSE 100 Index adding up to 30 points when trading gets underway and reversing some of Wednesday’s 72 point drop to 6,270.
Corporate updates are likely to dominate today with Burberry (LON:BRBY), Unilever (LON:ULVR), Rank (LON:RNK) and Virgin Money all updating.
US markets were weak, with the mood soured by a shock profits warning from mega retailer Wal-Mart (NYSE:WMT) and weak subscriber growth numbers for Netflix.
Asda owner Wal-Mart saw its worst daily fall since February 2000, dropping 10% and knocking US$20bn off its value.
The Dow Jones Industrial fell 157 points to 16,925, while there were falls for the S&P 5600 and Nasdaq as well.
Reports that there is a split in the Fed over when to raise interest rates boosted Asian markets, which shrugged off the US weakness to notch up strong gains.
The Nikkei in Tokyo rose over 1%, Hong Kong jumped almost 2% and Shanghai 1.8%.