miners

Global miner Rio Tinto has posted a record first half for iron ore production and sales, but shares have come under pressure in early trading after the firm reported output had exceeded sales.

The team behind Majedie's £1.1bn UK Equity fund has bought back into miners, having avoided them for most of the second quarter.

The UK's largest companies were climbing this morning on the back of Chinese stimulus hopes, after Shanghai Securities News said Chinese banks have "sped up" lending.

Markets across Europe have risen on hopes EU leaders may agree new measures to tackle the debt crisis at the NATO summit this week.

Commodity prices could rise by as much as 20% in the second half of 2012 while forecasts for falls in mining stocks are overdone, according to Credit Suisse.

Miners are set to rally ‘strongly' in the second half of 2012, according to Barings' Clive Burstow, as Chinese growth will surprise and beat its annual growth target, boosting investor confidence.

European markets have added to early losses as concerns over Chinese growth hit miners and a military coup in Mali sent Rangold Resources shares plummeting.

Mining stocks slumped in afternoon trading as Rio Tinto said it has seen slowing demand from China, its best customer, while Australia implemented a controversial mining tax.

WHAT 'GLENSTRATA' MERGER MEANS

US indices have opened almost 2% higher on the first trading day of 2012 as risk appetite resumes across global markets.