China data and Vodafone deal propel FTSE to 100pt gain

The FTSE 100 has rallied strongly on positive manufacturing data from China, as well as the prospect of Vodafone's deal to sell its holding in Verizon Wireless.

The FTSE rose 100 points or 1.6% to trade at 6,512 by early afternoon, reversing some of the losses sustained in August, when the index fell 2.5%. Mining stocks lead the index higher after positive manufacturing news from China overnight: the country's latest PMI reading beat analysts' expectations for the second month in a row. Rio Tinto and Anglo American both rose 4% on the news, with Glencore Xstrata and BHP Billiton recording gains of 2.6% apiece. Meanwhile, Vodafone rose a further 4% to 215p as a deal to sell its 45% stake in Verizon Wireless appears to near completion. Sh...