Business

FTSE 100 closes higher as miners gain

Trader watching monitor Image copyright AFP

(Close): London's leading shares closed higher on Monday, with mining stocks bolstering the City's benchmark index.

Thethe FTSE 100 closed up 0.75%, or 53 points, at 7,097.50.

BHP Billiton and Vedanta Resources were among the top gainers, adding 2.8% and 4%.

Mining firms have benefited from the fall in the pound since the Brexit vote, since they generate most of their revenues abroad. A weaker pound boosts overseas revenues in sterling terms.

The pound continued to drop against the dollar, falling 0.3% to $1.23950. It also fell 0.07% against the euro to €1.1100.

The pound declined in value all last week, with traders nervous about how the UK's talks with the EU over leaving the bloc will progress.

One of the biggest gainers on the FTSE 100 was Rolls-Royce, which added 1.3% on the strength of a broker upgrade.

Firms in the construction sector were the biggest losers, with Travis Perkins, Persimmon and Taylor Wimpey shedding 2.6%, 3%% and 2.6% respectively.