FTSE 100 movers: New China currency policy boost miners

21st Jun 2010 15:34

Miners are dominating the risers in the Footsie following a change in Chinese policy over the Yuan. China says that it will allow its currency to make a modest appreciation following a two-year period when it was pegged to the dollar. This is good news for importers of metals into China. Vedanta Resources, Rio Tinto, Xstrata and BHP Billiton head the risers and all of the top eight performers are miners. BHP and Rio have agreed to increase iron ore royalties at all their mines in Western Australia in order to smooth the passage of their US$116bn iron ore joint venture. The deal will see rates rise from 3.75% to 5.625% for fine ore and from 3.25% to 5% for beneficiated, or lower grade, ore. The rate of 7.5% for lump ore is already the prevailing rate for most of that ore produced by BHP's projects.BP is back on a downward trajectory today after it said that the Gulf of Mexico oil spill has already cost it $2bn. Anadarko, which has a 25% stake in the oilfield, is trying to shirk its responsibilities by claiming the problems are all due to BP's actions. BP is thought to be planning to raise up to $50bn from bond issues and disposals. FTSE 100 - RisersVedanta Resources (VED) 2,468.00p +5.88%Rio Tinto (RIO) 3,497.50p +5.19%Xstrata (XTA) 1,078.50p +5.01%BHP Billiton (BLT) 2,029.50p +4.61%Antofagasta (ANTO) 917.50p +4.56%Kazakhmys (KAZ) 1,237.00p +3.60%Lonmin (LMI) 1,723.00p +3.30%Anglo American (AAL) 2,727.50p +3.12%Petrofac Ltd. (PFC) 1,277.00p +2.82%Cairn Energy (CNE) 447.50p +2.73%FTSE 100 - FallersBP (BP.) 345.60p -3.32%Marks & Spencer Group (MKS) 344.50p -2.02%United Utilities Group (UU.) 530.00p -1.67%Compass Group (CPG) 558.00p -1.67%Capita Group (CPI) 775.50p -1.34%Reckitt Benckiser Group (RB.) 3,255.00p -1.33%Royal Bank of Scotland Group (RBS) 46.40p -1.28%National Grid (NG.) 510.00p -1.26%Severn Trent (SVT) 1,228.00p -1.13%TUI Travel (TT.) 222.50p -1.07%