LONDON (ShareCast) - Mining stocks were performing well on Monday with expectations for further quantitative easing (QE) measures from the Federal Reserve driving gains.

UBS said this morning that the outlook for the UK mining sector is improving: "QE triggers a return of capital flows to emerging markets, incentivising companies to stop running for cash and embark on a commodity bullish restocking phase. As in the past, QE is likely to drive up commodity prices and in turn mining equities."

Kazakhmys, which was upgraded by the Swiss broker today from ‘sell’ to ‘buy’, was the best performing FTSE 100 constituent this afternoon. Sector peers Vedanta, Rio Tinto and Fresnillo were also wanted.

Xstrata edged higher, extending gains made Friday when Glencore released its eleventh-hour adjustment to its offer for the miner. Glencore gave details of its proposal to Xstrata this morning, saying that "it is content with Xstrata's request for Xstrata management and senior employees to receive appropriate retention and incentive packages."

In small cap movements, Noricum Gold rose strongly today after delivering “highly positive” results from its Rotgulden licence area in Austria.


Top performing sectors so far today
Construction & Materials 3,446.56 +2.09%
Industrial Metals & Mining 2,742.32 +1.95%
Industrial Engineering 7,578.24 +1.21%
General Retailers 1,857.82 +1.18%
Mining 18,742.82 +0.98%

Bottom performing sectors so far today
Gas, Water & Multiutilities 5,241.60 -1.31%
Food Producers & Processors 5,882.14 -1.28%
Tobacco 35,150.62 -1.11%
Beverages 12,427.45 -0.96%
Food & Drug Retailers 4,235.62 -0.70%

BC

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