FTSE climbs 1.6% on Fed rate caution

Yellen issues caution around rate rises

The FTSE 100 was up 1.6% in morning trading, with the mining sector among the highest climbers, following Federal Reserve chair Janet Yellen's latest urge for caution in raising US interest rates.

The UK's blue-chip index sat at 6,200 points by 11am, led by mining companies Anglo American, which was up 10.2% to 528p, Glencore, up 6.8% to 153.5p, and BHP Billiton, which rose 6.3% to 797p. The companies bounced after Yellen reiterated yesterday the US central bank should "proceed cautiously" when adjusting policy. This hit the dollar and boosted the value of those dollar-earning firms which report in sterling. Yellen: Rate rise 'on track' for 2015 As a sector, miners were up 5.5%, despite hitting a one-month low in yesterday's trading session and falling 15.8% since the beginn...