Copper for three months delivery rose 2% to $7,855 in morning trading on the London Metals Exchange and lead gained 2.5% to $2,712 a ton. Kazakhmys Plc advanced 0.80% and Antofagasta increased 0.62% on the back of rising metals prices. Separately China forecasted more snowstorms in the next ten days which increases the likelihood of metals production disruptions.

Resolution Plc led decliners in the FTSE 100 stocks with a fall of 6.15% followed by losses in Old Mutual of 5.59%, in Aviva Plc of 4.92%, in Shire Plc of 4.53% and Alliance & Leicester 4.15%.

Financial stocks also fell on the dim view from the G-7 at the weekend that there were still downside risks to global economic growth. Standard Chartered and Barclays shed 3% and 2.88% respectively. Financial stocks were on the defensive after Societe Generale priced its rights offering at a discount.

Homebuilders also dropped after Goldman, Sachs & Co. downgraded them, citing that they were still vulnerable to the housing slowdown that is expected in 2008 and 2009. Home Retail Group edged down 2.58%, Hammerson declined 1.79% and Taylor Wimpey slipped 1.66%.

Company News

The Financial Times reported today that property developers David and Simon Reuben are shelving plans to convert a loan into an equity stake in business class only airline Silverjet.