FTSE closes above 6500

Largely driven by a strong mining sector, the FTSE 100 has finished the day 1.4% ahead.

Mineral extractors are by far the best performing sector today on the FTSE, after China’s manufacturing PMI came in at 50.1 for August, showing marginal growth but crucially ending three months of contraction. Chinese manufacturing has made an unlikely turnaround from an 11-month low to a four-month high. As China is a large buyer of raw materials like copper, traders aggressively bought mining stocks.

UK manufacturing PMI reached its highest level since February 2011, after the August report came in at 57.2, comfortably above projections of 55.2.  

Vodafone is in advanced talks with Verizon Communications to sell its 45% stake in Verizon Wireless. Vodafone could receive up to $130 billion for its shareholding and its share price is up 3% today.

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