FTSE 100 hits two-month high thanks to mining firms and Unilever

London’s FTSE 100 closed at its highest level in over two months on Tuesday as shares in the capital’s mining giants and consumer company Unilever soared. The top index closed up 0.2%, or 13.21 points, ending the day at 7,691.8. The mining companies were helped by noises out of China that the country might support its property sector, a massive customer for mining firms. It was the index’s best closing score since May 23, the day before it plunged nearly 136 points due to worries over the US debt ceiling. It came as the International Monetary Fund (IMF) said on Tuesday morning that the UK’s economy would grow much faster this year than it had previously thought. The 0.7 percentage point upgrade means the UK’s output is expected to grow by 0.4% this year. Despite the upgrade the UK is still expected to be the second-worst performing country in the G7. In Europe the markets were fairly subdued. Germany’s Dax index closed up 0.1% while the Cac 40 in Paris lost 0.2%. On Wall Street the S&P 500 was trading up around 0.3% while the Dow Jones had gained 0.2% a little after markets closed in Europe. On currency markets the pound gained 0.4% to end at 1.287 dollars and 0.6% against the euro to reach 1.165. In company news, Unilever shares soared 4.5% after it hiked its expectations for the year. The business now expects underlying sales growth to hit more than 5%. Its operating profit rose by more than a fifth to 5.5 billion euros (£4.7 billion) in the six months to the end of June. The shares rose despite the revelation at the weekend that the Dove and Hellman’s owner would allow its Russian employees to be conscripted by the armed forces which are attacking Ukraine. Wickes said it would buy back £25 million of its own shares after reporting a 3% rise in like-for-like sales in the three months to the end of June. The builders’ merchant said sales of DIY products were beginning to improve, despite still doing worse than last year. The biggest risers on the FTSE 100 were Antofagasta, up 102.5p at 1,657p, Anglo American, up 115.5p at 2,506p, Croda, up 268p at 5,930p, Unilever, up 174.5p at 4,193p, NS Rio Tinto, up 217p at 5,394p. The biggest fallers on the index were Compass, down 110p at 2,106p, Melrose Industries, down 14.6p at 518.4p, IAG, down 4.05p at 149.05p, Rolls-Royce, down 4.05p T 152.65P, and Associated British Foods, down 53p at 2,038p.