UK stocks hit 11-week high

The prospect of a change in Chinese monetary policy has had a knock-on effect on traders in the UK, with shares rising to an 11-week high after China's mild economic slowdown.

Mining stocks led the way as Vedanta Resources and Xstrat moved up by one per cent, while Rio Tinto Group leapt 2.6 per cent following record iron ore production, reports Bloomberg.

The FTSE Index climbed 42.54 points, or 0.8 per cent, to 5,699.98. Meanwhile, the broader FTSE AllShare Index also added 0.8 per cent.

Jonathan Sudaria, a trader at London Capital Group, said the reduction in growth seen from China reflected a global drop in GDP but claimed the market was seeing this in a reasonably sanguine light.

"However, given the drop-off in demand for Chinese imports from Europe and the wider global economic uncertainty, traders are spinning the data as a positive given that it could have been worse," he explained.

Reuters noted earlier today (January 17th) that China's money rates had jumped again.

Posted by Clive Arneil