Morning Markets: Fed rate pledge boosts indices

A decision by the US Federal Reserve to keep interest rates on hold boosted sentiment in London this morning.

The FTSE advanced 13.4 points, or 0.2%, to 5,633.82, helped largely by early gains for miners. Yesterday, the Federal Reserve vowed once again to keep US rates at rock-bottom levels for "an extended period" while it waits to measure the strength and sustainability of the economic recovery. In London, Rio Tinto rose 1.1% to £37.41 after agreeing a new distribution deal with two of Japan's largest steel makers. Elsewhere, Xstrata advanced 1.3% to £11.80, Fresnillo gained 1.7% to 840p and Eurasian Natural Resources rose by 1.4% to £11.83. In Asia, Japanese stocks surged to ...