FTSE Heads For Best Week In Almost Four Years

The FTSE 100 is on course for its biggest weekly gain in almost four years after world stock markets were boosted by fading fears of a US rate rise this year and rising oil costs.

The eagerly anticipated minutes of last month's meeting of the Federal Open Market Committee showed there was growing concern among policymakers at the Federal Reserve about the economic slowdown in emerging markets.

While they expressed confidence in the US recovery, members noted that inflation remained abnormally low.

"The committee decided that it was prudent to wait for additional information," the Fed said in the minutes.

The annual inflation rate of 0.2% was cited as the main reason for markets pushing their rate rise expectations into 2016.

While Fed chair Janet Yellen has repeatedly bolstered expectations of a rate rise this year, weaker than expected US employment numbers since the Fed's last decision to leave rates on hold have also eased expectations of action either this month or in December.

The minutes helped US stocks rally in afternoon trading on Thursday, with the S&P 500 rising almost 1% by the close.

Asian stocks also built on their gains of recent days on Friday while the FTSE 100 was 1.2% higher in afternoon trading - back above the 6,400 level following the summer turbulence over China's fortunes which saw it plunge to its worst daily loss since 2009 in August.

The London market was provisionally on track for a weekly win of more than 5% - with energy firms helping lead the way after a recovery in oil prices.

Brent Crude was trading at more than $53-per-barrel - a consequence of concerns about Russia's military action in Syria leading to a possible wider conflict.

A glut in supply has lasted more than a year and coincided with the economic weakness in China and other developing nations, further damaging demand.

Miners dominated the gains on the FTSE, with Glencore (Xetra: A1JAGV - news) shares recovering more lost ground after it announced a big cut in zinc production and more than 1,500 job losses (Other OTC: UBGXF - news) .