Business

FTSE 100 extends gains to close up 1%

Trader watching monitor Image copyright AFP

The London market doubled its lunchtime gains to close well over 1.3% after US shares rose on expectations of a rate rise this week.

The FTSE 100 index closed 78.15 at 6,968.57 points.

The index was boosted by a wide-ranging rally, with aero-engine maker Rolls-Royce, broadcaster ITV, airline group IAG all among the top risers.

But those expectations of a US interest rates pushed the price of metals lower, which hit mining shares.

Antofagasta fell 4% and Billiton 3%.

In the FTSE 250, Paysafe Group fell 17% after it denied allegations from Spotlight Research that claimed the company was enabling both illegal gambling and Chinese capital control evasion.

Shares in NCC Group dropped more than 7% after the cyber security firm issued a profit warning.

NCC had said in October that three contracts had been cancelled and one deferred, and in its latest update it said it did "not expect to make up this profitability in the current financial year".

Shares in Carpetright fell 7.5% after it reported a 42% drop in half-year profits to £4.1m.

The retailer admitted it had suffered a "challenging" first half, with consumer demand "uneven" and the fall in the pound raising the cost of imports.

However, Carpetright said the second half of its financial year had seen a "promising start", with like-for-like sales up 2.6%.

On the currency markets, the pound was given a slight boost by the latest inflation figures, which showed that inflation hit a higher-than-expected rate of 1.2% last month.

The pound was flat against the dollar at $1.2682 and 0.2% higher against the euro at €1.1942.