FTSE 100 surges 6.19%

The FTSE 100 has ended over six per cent higher after a strong start this morning continued with a rally on Wall Street.

The index closed 219 points higher at 4,300.06 with mining stocks leading the way.

Anglo American rose 18.77 per cent, while BHP Billiton was up by 17.79 per cent and Eurasian Natural Resources jumped 16.42 per cent.

Only four stocks were trading lower, with Wood Group down 4.09 per cent and Stagecoach down 4.02 per cent following last week's profits warning.

The rise echoed a worldwide rally in equity markets, helped by optimism the US government is planning a bailout for the auto industry and a pledge from president-elect Barack Obama that he will oversee massive infrastructure investment to boost jobs.

Ryan Kneale, market analyst at city bookmaker BetsForTraders.com, said: "The European markets have risen sharply this morning following improved sentiment towards the US, higher commodity prices and a bounce back in financial stocks.

"Whilst the upturn looks strong and is being supported by gains in several different sectors, the economic data we have seen of late would lead us to believe that this is simply another bear market rally."