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The mining sector is up 2% after Beijing stated that it will pursue infrastructure projects to keep growth above 7%. The Chinese economy isn’t growing as fast as it once was and this is playing on investors’ minds, but overnight the Chinese premier Li Keqiang stated that excess construction material will be used on rail and road projects. Traders subsequently bought mining companies as they felt that the demand for minerals remains high, despite lower growth in Chinese manufacturing sector.
Equities this side of the Atlantic are benefiting from the bull-run in the US; last night the S&P 500 closed at its third consecutive record close.
In corporate news, Tullow Oil is offside after it failed to make any discoveries at wells in Mozambique and French Guiana; the share price is now down 7%. Sage Group stated that it is confident that third quarter earnings will be in-line with expectations, and the stock is up 3.2%.
Later today (London time), the latest consumer confidence figures will be announced for the US. If the report is strong we could see equities rally.