London close: Chinese stimulus lifts stocks despite ongoing Greek uncertainty

LONDON (ShareCast) - Stocks rebounded on Monday after as measures by policymakers in China to boost bank lending helped to repair sentiment after recent losses, despite ongoing uncertainty in Greece. London's FTSE 100 finished the session 0.82% higher at 7,052.13, with mining stocks leading the rise on increased hopes for the world's top metals consumer. The index had closed Friday's session at 6,994.63, its lowest close since 8 April.

The People's Bank of China (HKSE: 3988-OL.HK - news) , under pressure to support the economy following a recent batch of weak economic data, on Sunday lowered its reserve requirement ratio by one percentage point. The move, which was the most aggressive cut since 2008, was twice as much as some analysts had expected.

"There is optimism that the measures will free up capital for lending and help reignite growth in China and globally," said analyst Jasper Lawler from CMC Markets. Despite the rebound, uncertainty in Greece continued to be in focus as Greek short-term bond yields shot up to new record highs ahead of a Eurogroup meeting this week. Yields on two-year notes surged to over 26% ahead of a meeting to discuss the release of a further €7.2bn bailout tranche to Athens.

According to the director of the International Monetary Fund's European department, Poul Thomsen, said negotiations between Greece and its creditors have gained some momentum but the two parties remain distant.

In economic data , Rightmove (LSE: RMV.L - news) said house prices in the UK rose 1.6% to a new record high of £286,133 in April, while construction output in the Eurozone declined by 1.8% in February led by a drop in civil engineering.

Miners gain, IHG up on M&A speculation Miners such as Anglo American (LSE: AAL.L - news) , Rio Tinto (Xetra: 855018 - news) , BHP Billiton (NYSE: BBL - news) and Antofagasta (Other OTC: ANFGF - news) were rising strongly as stimulus measures in China spurred buying across the sector. Others groups exposed to China such as HSBC and Prudential (LSE: PRU.L - news) were also in demand.

Hotels group IHG was also on the up as the stock extended gains made Friday on rumours that it could merger with US peer Starwood Hotels & Resorts.

Russia-focused steel producer Evraz (LSE: EVR.L - news) rose after reporting stable output levels in the first quarter of 2015.

Oilfield services outfit Petrofac dropped 10% after saying it expects to report a further loss of $195m in 2015 for the Laggan-Tormore gas plant project on Shetland. The company already recognised a $230m loss on the project in 2014 and had told investors earlier this year that it would not lose any more money.

After an earlier rise, engineering software group Aveva dropped into the red with investors underwhelmed by a short, albeit positive, pre-close trading update which said annual results should meet analysts' forecasts.

Polymer products group Victrex (LSE: VCT.L - news) was advancing after Exane BNP Paribas lifted its rating on the stock to 'outperform'.

Market Movers techMARK 3,211.01 +0.51% FTSE 100 7,052.13 +0.82% FTSE 250 17,603.47 +0.18% FTSE 100 - Risers Ashtead Group (LSE: AHT.L - news) (AHT) 1,144.00p +2.88% Anglo American (AAL) 1,038.00p +2.72% Rio Tinto (RIO) 2,874.00p +2.61% BHP Billiton (BLT) 1,481.50p +2.46% InterContinental Hotels Group (IHG) 2,786.00p +2.35% HSBC Holdings (Xetra: HBC2.DE - news) (HSBA) 613.30p +2.22% Antofagasta (LSE: ANTO.L - news) (ANTO) 747.00p +2.05% ARM Holdings (LSE: ARM.L - news) (ARM) 1,150.00p +2.04% Smith & Nephew (LSE: SN.L - news) (SN.) 1,158.00p +1.94% Aggreko (EUREX: AGKF.EX - news) (AGK) 1,630.00p +1.88% FTSE 100 - Fallers Fresnillo (FRES) 716.00p -1.72% Associated British Foods (LSE: ABF.L - news) (ABF) 2,863.00p -1.48% Capita (CPI (Other OTC: CPICQ - news) ) 1,107.00p -1.25% G4S (GFS (Taiwan OTC: 6026.TWO - news) ) 295.00p -1.07% Persimmon (PSN) 1,716.00p -0.98% Coca-Cola HBC AG (CDI) (CCH) 1,345.00p -0.96% Carnival (CCL) 3,189.00p -0.87% Kingfisher (KGF) 351.60p -0.82% RSA Insurance Group (RSA) 422.20p -0.80% Royal Mail (LSE: RMG.L - news) (RMG) 442.10p -0.79% FTSE 250 - Risers Imagination Technologies Group (IMG) 214.00p +5.68% Vedanta Resources (Other OTC: VDNRF - news) (VED) 578.00p +4.81% RPS Group (LSE: RPS.L - news) (RPS) 250.00p +4.56% Northgate (NTG) 650.50p +3.83% Bwin.party Digital Entertainment (BPTY) 81.65p +3.49% Kaz Minerals (LSE: KAZ.L - news) (KAZ) 234.80p +3.07% Victrex plc (VCT) 2,043.00p +2.25% Playtech (PTEC) 800.50p +2.23% Allied Minds (Other OTC: ALLWF - news) (ALM) 678.50p +2.11% Debenhams (DEB) 89.45p +2.11% FTSE 250 - Fallers Petrofac Ltd. (PFC) 912.50p -10.01% Bank of Georgia Holdings (BGEO) 1,957.00p -4.07% Polymetal International (LSE: POLY.L - news) (POLY) 543.50p -3.12% Lonmin (LMI) 136.00p -2.93% Indivior (Berlin: 2IV.BE - news) (INDV) 200.80p -2.67% Hunting (HTG) 600.50p -2.36% Pets at Home Group (PETS) 258.30p -2.23% Brown (N.) Group (BWNG) 320.40p -2.14% Fidessa Group (LSE: FDSA.L - news) (FDSA) 2,289.00p -1.80% Aveva Group (Other OTC: AVEVF - news) (AVV) 1,574.00p -1.62%