12/05/14 Market Movements

Market news

The FTSE100 climbed 37.18 points to close at 6,851.75 – its highest level in 11 weeks, as a mining company rally outweighed a decline by British Sky Broadcasting Group Plc.

Rio Tinto Group led the mining surge, gaining 4.75% after JPMorgan Chase & Co. recommended buying shares in commodity producers.  Petrofac and BHP Billiton climbed 3.48% and 2.72% respectively following the recommendation.

Conversely, BSkyB lost 2.4% after confirming that it has held talks to buy Sky Deutschland and Sky Italia for a combined £8.15 billion from 21st Century Fox Inc.  It is believed that the deal would enable BskyB to deal with growing competition from rivals such as BT in sport as well as online groups like Netflix in movies and blockbuster TV shows.