FTSE 100 up ahead of US Fed decision adding £27bn to its value

The FTSE 100 has climbed by more than 100 points as investors await the latest interest rate decision from the US.

London's leading share index added £26.6bn to the value of its constituent companies.

Markets in Europe and the US were also ahead.

The FTSE 100's rise of 103.3 points, or 1.54%, to 6813.6, was the biggest in percentage terms for just over two weeks.

Global mining giants Glencore (Frankfurt: 8GC.F - news) and Anglo American (LSE: AAL.L - news) led the risers, with supermarket Tesco (Frankfurt: 852647 - news) and Asia-focused bank Standard Chartered (HKSE: 2888.HK - news) also doing well.

The miners were helped by weakness in the US dollar, which makes the commodities they sell in dollars cheaper for buyers holding other currencies.

Experts said the strong stock performance reflected volatility ahead of Wednesday's rates decision from the US Federal Reserve.

Markets are keenly awaiting the decision of the central bank, led by Janet Yellen, on whether the world's biggest economy is yet ready for another rates hike.

Low rates tend to push up share prices as the returns available from stocks are then more attractive.

These low rates were put in place by a number of economies including the US and the UK to cushion them from the financial crisis.

The US saw a hike in rates last December for the first time since the financial crisis and improving jobs figures in the US mean Fed officials are looking increasingly ready to lift them again.

The performance of the FTSE 100 has little to do with the health of the UK economy, as many of its key companies make most of their money abroad.

But it is of key importance for investors including pension funds looking after the retirement plans of millions of UK workers.

The FTSE 100 fell sharply immediately after the Brexit vote but has recovered strongly since then, helped by added stimulus from the Bank of England and the collapse in the value of the pound.